1. An investment of $10,000 today, will pay 6 yearly payments of $2,500 each. Determine the...

 

Transcribed Image Text:

1. An investment of $10,000 today, will pay 6 yearly payments of $2,500 each. Determine the rate of return on this investment to the second decimal place. 2. Compute the rate of return for a project that has an initial cost of $40,000 and would provide positive cash flows of $6,000 the first year, $7,000 the second year, $8,000 the third year, $9,000 the fourth year, $10,000 the fifth year, and $11,000 the sixth year. I 3. What is the rate of return for a capital investment project that will have the cash flows described in table below? Year 0 1-2 3-5 Cash flow -$10,500 2,000 4,000 1. An investment of $10,000 today, will pay 6 yearly payments of $2,500 each. Determine the rate of return on this investment to the second decimal place. 2. Compute the rate of return for a project that has an initial cost of $40,000 and would provide positive cash flows of $6,000 the first year, $7,000 the second year, $8,000 the third year, $9,000 the fourth year, $10,000 the fifth year, and $11,000 the sixth year. I 3. What is the rate of return for a capital investment project that will have the cash flows described in table below? Year 0 1-2 3-5 Cash flow -$10,500 2,000 4,000