Norne Corporation is considering building a new plant.It will cost $1 million today to build it and it will generate revenues of $1.121 million three years from today.Of the interest rates below,which is the highest interest rate at which Norne would still be willing to build the plant?
A)3 percent
B)3.5 percent
C)4 percent
D)4.5 percent

Question

Quizplus · Accepted Answer

The Answer of Norne Corporation is considering building a new plant.It will cost $1 million today to build it and it will generate revenues of $1.121 million three years from today.Of the interest rates below,which is the highest interest rate at which Norne would still be willing to build the plant?
A)3 percent
B)3.5 percent
C)4 percent
D)4.5 percent

Norne Corporation Is Considering Building a New Plant