Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Holding period and annual (investment) returns. Bohenick Classic Automobiles restores and rebuilds old classic cars. The company purchased and restored a classic 1957 Thunderbird

image text in transcribed

Holding period and annual (investment) returns. Bohenick Classic Automobiles restores and rebuilds old classic cars. The company purchased and restored a classic 1957 Thunderbird convertible 6 years ago for $8,900.00. Today at auction, the car sold for $89,000.00. What are the holding period return and the annual return on this investment? What is the holding period return of the car? 900 % (Round to two decimal places.) What is the simple annual return on the car? 150 % (Round to two decimal places.) What is the effective annual return (EAR) on the car? % (Round to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Business Mathematics with Canadian Applications

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

10th edition

133052311, 978-0133052312

More Books

Students also viewed these Finance questions

Question

Explain how fats may provide energy.

Answered: 1 week ago

Question

describe the key elements of work;

Answered: 1 week ago

Question

Complete the following acid-base reactions: (a) HCCH + NaH

Answered: 1 week ago

Question

=+b. Rank acceptable projects by NPV.

Answered: 1 week ago

Question

=+a. Determine the net present value (NPV) for the project.

Answered: 1 week ago