6. Gloria has been approached by Mark to invest $24,000 in a project. As a return, Mark promises $9,000 at the end of each year, for 3 years. If Gloria’s minimum required rate of return is 12%, should she invest?
a. She should not invest since rate of return of the project is 6%, which is smaller than her hurdle rate.
b. She should not invest since rate of return of the project is 8%, which is smaller than her hurdle rate.
c. She should invest since rate of return of the project is 12%, which meets her hurdle rate.
d. She should invest since rate of return of the project is 14%, which is greater than her hurdle rate.