You have an investment opportunity that requires an initialinvestment of $5,600 today and will pay...

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.)

Solutions

Expert Solution

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%

jeff jeffy answered 2 years ago

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