Victoria Albor, CFO of FINZ Corp is analyzing two investments: A and B. Past year, the investment
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Question:
Victoria Albor, CFO of FINZ Corp is analyzing two investments: A and B. Past year, the investment A had a market value of $175,000, and Investment B of $190,000. During the year, Investment A generated an actual income of $5,000 and Investment B of $3,000. Today, the actual market values for the investments are, respectively, for A, $190,000, and for B, $180,000.
Required
A. Calculate the expected rate of return on investments A and B for the year.
B. Based on your results, Which Investment performed better? Why?
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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