A property manager is renovating a landlord's apartment complex. The carpet supplier has promised to give the property manager S
1 answer:
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Answer:
Ans. The average annual rate of return over the four years is 2.792%
Explanation:
Hi, first let´s introduce the formula to use
Where:
r(1),(2),(3)...n are the returns in each period of time
n =number of returns to average (in our case, n=4).
With that in mind, let´s find the average annual return over this four years.
Therefore, the average annual return of this invesment in 4 years is 2.2792%
Best of luck.
Answer:
15.65%
Explanation:
The computation of the internal rate of return is shown below:
Given that
Years Cash outflow/ cash inflow
0 -$200,000
1 $100,000
2 $77,000
3 $52,000
4 $40,000
The formula is
= IRR()
AFter applying the above formula, the internal rate of return is 15.65%
