# Question

Assume that an investment generates the following income stream and can be purchased at the beginning of 2014 for $1,000 and sold at the end of 2020 for $1,200. Estimate the yield for this investment. If a minimum return of 9% is required, would you recommend this investment? Explain.

End of Income

Year Stream ($)

2014 .......... 140

2015 .......... 120

2016 .......... 100

2017 .......... 80

2018 .......... 60

2019 .......... 40

2020 .......... 20

End of Income

Year Stream ($)

2014 .......... 140

2015 .......... 120

2016 .......... 100

2017 .......... 80

2018 .......... 60

2019 .......... 40

2020 .......... 20

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