Your firm has a risk-free investment opportunity with an initial investment of $156,000 today and receive $180,000 in one year. For what level of interest rates is this project attractive?

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Your firm has a risk-free investment opportunity with an initial investment of $156,000 today and receive $180,000 in one year. For what level of interest rates is this project attractive?

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Answer 1

Answer #1

step 1) 156,000* (1+r)< 180,000

step 2) 180,000/ 156,000 -1= 0.1538461538 or Answer: 15.4%

answered by: Andrew San Andres

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Answer 2

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