The rate of return that Japan life realize on this investment is 48.087%.
<h3>What does the term "rate of returns" mean?</h3>
The percentage change in an investment's value is represented by the annual rate of return. For instance, if you estimate a 10% annual rate of return, you're anticipating that your investment's value would rise by 10% annually The result is multiplied by 100 to be reported as a percentage. The IRR evaluates the long-term performance of a project, capital expenditure, or investment.
Given:
To find rate of return in Yen,
Convert the initial and the ending value to Yen.
The initial cost is:
$10,000,000 × 80 = 800,000,000
The ending value in Yen is
10,770,000 × 110 = 1,184,700,000
Thus the rate of return in Yen,
rate of return =( 1,184,700,000 - 800,000,000) / 800,000,000
rate of return = 384700000/ 800,000,000 = 48.087%
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