A company needs to raise funds and plan to take out a loan for $X....

60.1K

Verified Solution

Question

Finance

image

A company needs to raise funds and plan to take out a loan for $X. all funds will be invested in a business project that generates a revenue of R(x)=3.95x0.5. If the interest rate on the loan is 31% what is the optimal about of x for the company to borrow? A company needs to raise funds and plan to take out a loan for $X. all funds will be invested in a business project that generates a revenue of R(x)=3.95x0.5. If the interest rate on the loan is 31% what is the optimal about of x for the company to borrow

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students