An investor purchases a $1,000,000 property today at an LVR of 70%. It sells for 30% more, 5 years later and selling costs are 2.5% of the sale price. Assuming neutral gearing, what is the ROE of this investment?

Select one:

a.

12.5%

b.

14.6%

c.

16.1%

d.

15.3%

e.

13.6%