If the expected return is above the required return on an asset, rational investors will: A. buy the asset, since price is expected to increase.
B. buy the asset, which will drive the price up and push the expected return to drop to the level of the required return.
C. sell the asset, which will drive the price down and cause the expected return to reach the level of the required return.
D. buy the asset, which will drive the price down and cause the expected return to reach the level of the required return.

You are working on a bid to build two city parks a year for the next three years. this project requires the purchase of $249,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the three-year project life. ignore bonus depreciation. the equipment can be sold at the end of the project for $115,000. you will also need $18.000 in net working capital for the duration of the project. the fixed costs will be $37000 a year and the variable costs will be $148,000 per park. your required rate of return is 14 percent and your tax rate is 21 percent. what is the minimal amount you should bid per park? (round your answer to the nearest $100) (a) $214,300 (b) $214,100 (c) $212,500 (d) $208,200 (e) $208,400