Question

A tech company can make a 3%real return on an investment. It can borrow funds to finance the investment at nominal rate of 6%and the inflation rate is 1%. Hence :-

1) the investment will be profitable.
2)the real rate of interest is 2%.
3)the real rate of interest is 3%.
4)the investment will be unprofitable.
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Answer 1

Answer:

2) the real rate of interest is 2%

Answer 2

Answer:

sorry I don't knowsorry I don't know

Explanation: