: Sharon says she has a great idea for a small biz and wants you to invest. You're busy and have no time for any work but have 100k in capital. Sharon only has 20K but thinks combined, that's enough to start the biz. You say youre not interested in an equity contract but willing to pay Sharon 40k a year if the company generates profits in exchange for a debt contract that pays 20k a year as long as the company operates. You believe if Sharon works VERY hard, the firm will generate 100k in revenue and have TOTAL expenses of 60k. But you also know Sharon runs a tutoring company and if she spends a lot of time doing that, she can make an additional 8k on the side but the firm will generate only 60k in revenue with the same expenses. What is your one year yield on this investment? (Define yield as Cash flow youre paid over what you invested and round to the nearest full percent).

** I know the answer is supposed to be 20% but how do I find that through excel?