To get started in a new telecommuting position with AB84 Business, Antonio

Brown took out a $1000 loan at i = 10% per year for 4 years to buy home office equipment.

From the creditors perspective, the investment in this young entrepreneur is expected to

produce an equivalent net cash flow (NCF) of $315.47 for each of 4 years. This represents a

10% per year rate of return on the unrecovered balance. Compute the amount of the

unrecovered investment for each of the 4 years using (a) (5 points) the rate of return on the

unrecovered balance (the correct basis) and (b) (5 points) the return on the initial $1000

investment.

D. Interpretation of Rate of Return Value 1. [M031] To get started in a new telecommuting position with AB84 Business, Antonio Brown took out a $1000 loan at i = 10% per year for 4 years to buy home office equipment. From the creditor's perspective, the investment in this young entrepreneur is expected to produce an equivalent net cash flow (NCF) of $315.47 for each of 4 years. This represents a 10% per year rate of return on the unrecovered balance. Compute the amount of the unrecovered investment for each of the 4 years using (a) (5 points) the rate of return on the unrecovered balance (the correct basis) and (b) (5 points) the return on the initial $1000 investment. N