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Rate of return

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.

Solution Summary

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