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QUESTION 15 Table: Investment Projects Project Rate of return Cost A 16 % $1,000 13 $2,000 C $500 D 5 $500 2 $10,000 Suppose
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Answer #1

Market interest rate = 6%

Only projects with ROR greater than market interest rate will be selected

So Project A, B, & C would be selected as their ROR is greater than market interest rate

Total investment = 1000 + 2000 + 500 = 3500

investment spending = 3500

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