6. Gloria has been approached by Mark to invest $24,000 in a project. As a return, Mark promises $9,000 at the end of e
Posted: Wed Jul 06, 2022 6:39 pm
6. Gloria has been approached by Mark to invest $24,000 in aproject. As a return, Mark promises $9,000 at the end ofeach year, for 3 years. If Gloria’s minimum requiredrate of return is 12%, should she invest?
She should not invest since rate of return of the project is 6%,which is smaller than her hurdle rate.
She should not invest since rate of return of the project is 8%,which is smaller than her hurdle rate.
She should invest since rate of return of the project is 12%,which meets her hurdle rate.
She should invest since rate of return of the project is 14%,which is greater than her hurdle rate.
She should not invest since rate of return of the project is 6%,which is smaller than her hurdle rate.
She should not invest since rate of return of the project is 8%,which is smaller than her hurdle rate.
She should invest since rate of return of the project is 12%,which meets her hurdle rate.
She should invest since rate of return of the project is 14%,which is greater than her hurdle rate.