An investment costs $500 and is expected to produce cash flows of $50 at the end of year 1, $60 at the end of year 2, $70 at the end of year 3, and $516 at the end of year 4. What rate of return would you earn if you bought this investment?© BrainMass Inc. brainmass.com June 3, 2020, 11:58 pm ad1c9bdddf
Please refer attached file for better understanding of formulas in MS Excel.
Let us analyze cash flows associated with the investments
Year Cash flow
You can use IRR function in MS Excel ...
Solution determines the rate of return on the given investment.