Macroeconomics Problem
Using the formula for the rate of return ((Projected Revenue - Estimated Cost) / Estimated Cost x 100), assume that the interest rate in the loanable funds market is 7% and the projected revenue from investing in a Cuppa Coffee Company is $100,500 and the estimated cost of the project is $93,000. Would it be a rational business decision for the Cuppa Coffee Company to borrow the funds necessary to invest in the new coffee roaster? Show work and explain.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.