In: Finance
You have an investment opportunity that requires an initial investment of $5,600 today and will pay $7,800 in one year. What is the rate of return of this opportunity?
The rate of return for this opportunity is %. (Round to two decimal places.)
The rate of return = Cash flow in one year/Initial investment - 1
The rate of return = 7,800/5,600 - 1
The rate of return = 0.3928571429
The rate of return = 39.28571429%
The rate of return = 39.29%