Project Description: In this problem, you will calculate the rate of return of several investments. Steps to Perform: Step Instructions Points Possible

1 Start Excel. Download and open the workbook named: Zutter_Problem_8-2_Start.xlsx In cell E18, by using cell references to the given data, calculate the rate of return of investment A.

2 In cell E24, by using cell references to the given data, calculate the rate of return of investment B.

3 In cell E30, by using cell references to the given data, calculate the rate of return of investment C.

4 In cell E36, by using cell references to the given data, calculate the rate of return of investment D.

5 In cell E42, by using cell references to the given data, calculate the rate of return of investment E.

6 Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed.

For each of the investments shown in the following table, calculate the rate of return earned over the period.

Investment Cash flow during period Beginning-of-period value End-of-period value

A -$800 $1,100 $100

B 15,000 120,000 118,000

C 7,000 45,000 48,000

D 80 600 500

E 1,500 12,500 12,400

Solution Investment

A Cash flow during period -$800 Beginning-of-period value $1,100 End-of-period value $100 Rate of return 46.1% Investment

B Cash flow during period $15,000 Beginning-of-period value $120,000 End-of-period value $118,000 Rate of return Investment

C Cash flow during period $7,000 Beginning-of-period value $45,000 End-of-period value $48,000 Rate of return Investment

D Cash flow during period $80 Beginning-of-period value $600 End-of-period value $500 Rate of return Investment

E Cash flow during period $1,500 Beginning-of-period value $12,500 End-of-period value $12,400 Rate of return

(Formula used in excel would be most helpful)