Question: Che Solve the following rate of return problems. a . An investment of $ 1 , 6 0 0 today returns $ 7 0 ,

Che
Solve the following rate of return problems.
a. An investment of $1,600 today returns $70,000 in 50 years. What is the internal rate of return on this investment?
b. An investment costs $750,000 today and promises a single payment of $13.5 million in 22 years. What is the promised rate of return, IRR, on this investment?
c. What return do you earn if you pay $24,890 for a stream of $5,000 payments lasting 10 years?
Note: Round your answers to 2 decimal places.
\table[[a. IRR,%,],[b. IRR,%,],[c. IRR,,%
Che Solve the following rate of return problems.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!