What is the rate of return on an investment of $16,278 if the company expects to receive $3,000 per year for the next 10 years _______
18 percent, 13 percent, 8 percent, or 3 percent
I believe the answer isn't given - please advise answer & show work - thanks!!!
The rate of retrun is 13%. You have to calculate the IRR of the stream of cash flow as below
0 1 2 3 4 ...
The solution explains how to calculate the IRR given a stream of cash flows