Answered

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If a firm requires investments to yield 10%, what would be an acceptable rate of return for the firm's latest investment?

A. 8%
B. 9%
C. 12%
D. 5%

Sagot :

GinnyAnsweridn
To determine the acceptable rate of return for the firm's latest investment, given that the firm requires a minimum return of 10%, let's examine each of the provided rates to see which one meets or exceeds this requirement.

- 8%: This rate of return is lower than the required 10%, so it is not acceptable.
- 9%: This rate of return is also lower than the required 10%, thus it is not acceptable.
- 12%: This rate of return exceeds the required 10%, so it is acceptable.
- 5%: This rate of return is significantly lower than the required 10%, making it unacceptable.

Out of the given options, the only rate of return that meets or exceeds the firm's required 10% is 12%. Therefore, the acceptable rate of return for the firm's latest investment is 12%.
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