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Rate of return

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An investment that costs $48,000 provided annual cash flows of $9,000 per year for six years. The desired rate of return is 10%. The actual return from the investment was:
a) less than the desired rate of return, b) equal to the desire ROI c) greater than the desired ROI, d) or it cannot be determined.

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Solution Summary

Solution contains calculation of actual rate of return on investment and compare it with desired rat of return.

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