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4) What are the Average Annual Rates of Return of each investment? Remember on Jan 1 of Year 1, the value of the investment is
4) What are the Average Annual Rates of Return of each investment? Remember on Jan 1 of Year 1, the value of the investment is the initial cost. You must remove annual depreciation to get the value on Dec 31. Jan 1 of Year 2 is the same as the value on Dec 31 of the year prior and so on. Round to the nearest dollar for the table and nearest tenth for the percentage. Investment B Investment A Value Value Dec Benefits Jan 1 31 After- Tax Average Annual Value After- Average Value Value Annual Benefits Jan 1 Dec 31 Value Tax Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Year 4 Year 4 Year 5 Year 5 Year 6 Year 6 Year 7 Year 7 Year 8 Average: Year 9 Average Annual Rate of Return: % Year 10 Which investment would TOM's choose? Average: Average Annual Rate of Return: 5) What is the Equivalent Annual Cost of each investment to TOM's Tomatoes and Herbs, LLC? Investment A: Investment B
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