Fish house be inclined to make the investment

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Reference no: EM131083720

Freds Fish House is contemplating an investment of $50,000 in new shrimp boat and deep fryers. Management of this company predicts a 6.3 percent annual return on this investment. The current market rate of interest is 5.6 percent. Freds Fish House will:

A. not make the investment since the cost is greater than the expected return.

B. not make the investment since the cost is less than the expected return.

C. make the investment since the cost is less than the expected return.

D. make the investment since the cost is greater than the expected return.

At which of the market rates of interest below would Fred's Fish House be inclined to make the investment?

A. ?3.5%.

B. ?3%.

C. ?2%.

D. at any of these interest rates listed.

Reference no: EM131083720

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