Q10

Problem 9 An investment of sz,000 today, will pay 10 annual payments of $300 each. Compute the rate of return on this investment. (Hint: between 8 and 9%) Problem 10 Determine the Rate of Return for a project that has an initial cost of $80,000 and would provide positive cash flows of $12,000 the first year, $14,000 the second year, $16,000 the third year, $18,000 the fourth year, $20,000 the fifth year, and $15,000 the sixth year. (Hint: between 4 and 5%)