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Greg's Tasty Ice Cream is considering building a new ice cream factory that costs $8.3 million. The company accountants believe that, not accounting for interest costs, building the factory will increase profits by $5 million the first year, $4 million the second year and have no value thereafter. Greg's Tasty Ice Cream should build the factory if the interest rate is_______________

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oloruntoba24

Answer: investment cost vs return on Investment

Explanation: building the Ice cream factory would cost #8.3Million and the first year interest rate will be $5 Million and second year $4Millionan third year 0.

As a wise investor, proper feasibility  study should be carried out on new project if not the whole investment will be a wasted effort. Greg tasty Ice cream should be built if the interest rate is $10-$20Million dollars

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