Question
Asked Feb 5, 2020
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Off-The-Books Investment Firm, LLC, has offered you an investment it says will return to you $20,000 in 2 years. To get in, you'll need to make a $10,000 deposit to their receivables account and promise not to tell anyone about it. What is the annual return on investment? Answer in Excel. Please make sure that you use every argument in EXCEL, Please leave nothing blank! Thanks

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Expert Answer

Step 1

Annual return on investment is 41.42%.

Computation of annual return on investment:

Excel spread sheet:

Finance homework question answer, step 1, image 1

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