To determine the acceptable rate of return for the firm's latest investment, given that the firm requires a minimum return of 10%, let's examine each of the provided rates to see which one meets or exceeds this requirement.
- 8%: This rate of return is lower than the required 10%, so it is not acceptable.
- 9%: This rate of return is also lower than the required 10%, thus it is not acceptable.
- 12%: This rate of return exceeds the required 10%, so it is acceptable.
- 5%: This rate of return is significantly lower than the required 10%, making it unacceptable.
Out of the given options, the only rate of return that meets or exceeds the firm's required 10% is 12%. Therefore, the acceptable rate of return for the firm's latest investment is 12%.
