You recently paid $13,275 for an investment that promises to pay $675 at the end of each of the next 6 years, then an additional lump sum payment of $17.500 at the end of the 6th year. What is the expected rate of return on this investment? O a. 10.52% 0 0.9.28% O c. 13.19% d. 12.26% e. 11.34%

You recently paid $13,275 for an investment that promises to pay $675 at the end of each of the next 6 years, then an additional lump sum payment of $17.500 at the end of the 6th year. What is the expected rate of return on this investment? O a. 10.52% 0 0.9.28% O c. 13.19% d. 12.26% e. 11.34%

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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You recently paid $13.275 for an investment that promises to pay $675 at the end of each of the next 6 years, then an additional lump sum payment of
$17,500 at the end of the 6th year. What is the expected rate of retum on this investment?
O a. 10.52%
O b.9.28%
O c. 13.19%
O d. 12.26%
e. 11.34 %

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