An investment of 1,000 will return 1,025 in 0.25 years time. The required rate of return on
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An investment of €1,000 will return €1,025 in 0.25 years’ time. The required rate of return on the investment is 10% per year.
(a) What is the NPV of this investment?
(b) What annualized rate of return does the investment earn?
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