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Alexxx [7]
1 year ago
5

A new security system has a price-tag of $8,000, but should save your company $3,600 each year for the next 10 years in reduced

thefts. What is the profitability index of the security system
Business
1 answer:
tensa zangetsu [6.8K]1 year ago
3 0

If the required rate of return is 7.2%, no such security shall be purchased.

<h3>What does the required rate of return mean?</h3>

The required rate of return is the expected percentage of returns on investment at the time the investment is made. The required rate of return, in this case, is 7.2%.

The actual returns earned from purchasing the security for $8000 and receiving returns of $3600 are calculated to be around a 3.6% return.

As a result, if the required rate of return on investment is 7.2%, the security should not be purchased.

Read more about the required rate of return here:

brainly.com/question/13987385

#SPJ4

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Entrepreneurs use distributors to purchase resources and invest in the production of goods. True or false?.
ANEK [815]

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<h3>How do Entrepreneurs purchase resources?</h3>

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Find out more on Entrepreneurship at brainly.com/question/13628349

#SPJ1

4 0
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What is the key to successful investing?
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