AN ARRAY OF INVESTMENTS

Investment Cost Return

A $100 $101

B $100 $103

C $100 $105

D $100 $107

E $100 $109

• At 2%, only investment A would be unprofitable. All other investments have a return greater than opportunity cost

• At an interest rate of 4%, both A and B are unprofitable

• If interest rates exceeded 9%, all investments would be unprofitable

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