What will your rate of return be

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Q1) 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?

Q2) Considering the information in the question above, what would be your rate of return on your investment if the project winds up with a 15% loss instead of a 20% profit?

Reference no: EM133091710

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