Decision to take the project on the basis rate of return
Your borrowing rate is 10%/year. Your lending rate is 4%/year. The project costs $1,000 and returns a rate of return of 8%. If you have $900 to invest, should you take the project?
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The project costs $1,000 and returns a rate of return of 8%. If you have $900 to invest, should you take the project?
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