Answer:
Rejected if the cost of the capital is greater than 12%
Explanation:
Given information in the question
Total assets $150,000
Total current liabilities $110,000
Total expenses $160,000
Total liabilities $115,000
Total revenues $180,000
Return on investment = 12%
By considering the above information, we can concluded that if the project earning i.e ROI is 12% should be rejected if the cost of capital is more than 12% i.e given in the question
