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What will rate of return be if things go as expected

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Problem 1: Assume that you can invest $50,000 for one year in a project that is expected to have a 20% profit. You can borrow money at a 12% interest rate. If you borrow $40,000 and invest $10,000 of your own money, what will your rate of return be if things go as expected?

Reference no: EM132956264

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