calculate the unadjusted rate of return for an investment that has a net cost of $430,000 and should provide an average after-ta

Question

1 year ago

15

x return of $40,000 for the next 15 years. round your answer to the nearest whole percentage.

1 answer:

Elden [556K] · Answer 1 · 2024-02-28T08:59:01+03:00

9%, as the unadjusted rate of return is equal to the average yearly net income growth rate divided by the initial investment's net cost.

<h3>Calculation:</h3>

$40,090 divided by $430,00 is.093 * 100, or 9%.

<h3>If the needed rate of return is 6%, what is the present value of a cash inflow of $2,000 five years from now? Examine later?</h3>

$2600 will be given to the recipient after five years.

<h3>If the internal rate of return is 5% and the desired rate of return is 6%, should management accept the investment opportunity?</h3>

No, as the internal rate of return on the investment is lower than the intended rate of return.

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