General Electric has the opportunity to purchase a new factory?

1 ⤊

General Electric has the opportunity to purchase a new factory?

today that will provide them with a $50 million return four years from now. If prevailing interest rates are 6 percent, what is the maximum that the project can cost for General Electric to be willing to undertake the project?

a. $39,604,682
b. $50,000,000
c. $43,456,838
d. $34,583,902
e. $53,406,002

2007-10-27 10:01:11 · 2 answers · asked by investing1987 3 in Business & Finance ➔ Investing

2 answers

The answer is a. Just multiply it be 1.06 four times.

2007-10-27 10:35:53 · answer #1 · answered by Menehune 7 · 1⤊ 0⤋

Please do your own homework.

2007-10-27 17:26:42 · answer #2 · answered by npk 7 · 0⤊ 1⤋