If an investment project costing $2,800 was expected to yield $1,000 (to be received at year end) for each of the next three years, a profit-maximizing entrepreneur would

A) definitely undertake the project.
B) never undertake the project.
C) undertake the project if the interest rate was low enough.
D) undertake the project if the interest rate exceeded 12 percent.

Profit-Maximizing Entrepreneur

An individual or business that adjusts the combination of production inputs and outputs to achieve the highest possible profit.

Investment Project

A planned undertaking aimed at achieving specific financial returns through the allocation of resources to productive activities.

Interest Rate

The proportion of a total amount of money that is levied for borrowing it, usually described as a yearly rate percentage.