# Rate of return

A Co. has two investments opportunities. Both investments cost $5,000 and will provide the following net cash flows.

Year Investment A Investment B

1 $3,000 $3,000

2 3,000 4,000

3 3,000 2,000

4 3,000 1,000

The total present value in investment A's cash inflow's assuming 10% minimum rate of return is (rounded to the nearest whole dollar):

a) $10,628 b) $9,510 c) $3,452 d) $3,000

https://brainmass.com/business/modified-internal-rate-of-return/determining-rate-return-example-problem-182836

#### Solution Summary

Solution describes how to calculate net present value.

$2.19