a. If the interest rate is 11%, which projects will Lexmark take on?

A

B

C

D

E

If the market interest rate is 6%, which projects will it take on?

A

B

C

D

E

b. Lets turn the above information into a demand curve for loanable funds. Organize this data to convert it into Lexmarks loanable funds demand curve.

Interest rate (%)

there is a graph, if you need ask me to send pic.

LOCS: End of Chapte Fenuzakhon Burdova 2- Song - POUREBRAHIM) Activities and Due Dates tent, and the Financial System Resources Hint Check Answer gnment Score: 52.9% tion of 13 Saving. Investment, and the Financial System: End of Chapter Problem The financial analysts at Lexmark have evaluated five major projects. Each project, if it actually goes forward, will be financed by going to a bank to borrow the money. They've calculated a break-even interest rate": If they can borrow cash to pay for the project at less than that rate, the project will likely be a success; if the rate is higher, then it's not worth it. Cost Break-even Interest Rate Project A $100 million Project B S50 million 125 Project CS200 million 50% Project D S25 million Project E$150 million 10% a. If the interest rate is 11%, which projects will Lexmark take on? DA If the market interest rate is 6%, which projects will it take on? B ED ED MacBook Pro os 11 TE s A & 7 4 5 6 8 9 0 E R . Y U 0 F G H J " LOCS: End of Chapte Fenuzakhon Burdova 2- Song - POUREBRAHIM) Activities and Due Dates tent, and the Financial System Resources Hint Check Answer gnment Score: 52.9% tion of 13 Saving. Investment, and the Financial System: End of Chapter Problem The financial analysts at Lexmark have evaluated five major projects. Each project, if it actually goes forward, will be financed by going to a bank to borrow the money. They've calculated a break-even interest rate": If they can borrow cash to pay for the project at less than that rate, the project will likely be a success; if the rate is higher, then it's not worth it. Cost Break-even Interest Rate Project A $100 million Project B S50 million 125 Project CS200 million 50% Project D S25 million Project E$150 million 10% a. If the interest rate is 11%, which projects will Lexmark take on? DA If the market interest rate is 6%, which projects will it take on? B ED ED MacBook Pro os 11 TE s A & 7 4 5 6 8 9 0 E R . Y U 0 F G H J "