EconomicsAn investment of $40,000 yields a net annual income of $8,000 for 11 years. What is the annual interest rate ofthis investment?O a. 11.10%O b. 15.62%O c. 16.15%O d. 17.62%O e. 12.58%Engineering economy>>> please hurry up i onlyhave 20 minutes

Information Provided: Present value of investment = $40,000 Annual Income = $8000 Term = 11 years

Answered: An investment of $40,000 yields a net…

An investment of $40,000 yields a net annual income of $8,000 for 11 years. What is the annual interest rate of this investment?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...

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Question

Economics
An investment of $40,000 yields a net annual income of $8,000 for 11 years. What is the annual interest rate of
this investment?
O a. 11.10%
O b. 15.62%
O c. 16.15%
O d. 17.62%
O e. 12.58%
Engineering economy>>> please hurry up i only
have 20 minutes

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