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Kunkle Company wishes to earn 20% annually on its investments. If it makes an investment...

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Question

Accounting

Kunkle Company wishes to earn 20% annually on its investments. If it makes an investment that equals

or exceeds that rate, it considers it a success. Assume that it invests $2 million and gets $500,000 in return

at the end of each year for x years. What is the minimum value of x for which it will consider the

investment a success? Assume that it can't invest for fractional parts of a year.

A. 4 years

B. 7 years

C. 9 years

D. 6 years

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