You Are Offered an Investment That Will Pay You the Cash

Multiple Choice

You are offered an investment that will pay you the cash flows shown in the table. The first cash flow occurs in one year. The cost of the investment is $1,086.59 (today) . What is the return on the investment? $$\begin{array} { | c | c | } \hline \text { Year } & \text { Cash Flow } \\\hline 1 & \$ 70 \\\hline 2 & \$ 70 \\\hline 3 & \$ 70 \\\hline 4 & \$ 70 \\\hline 5 & \$ 1,070 \\\hline\end{array}$$

A) 5%
B) 7%
C) 9%
D) 11%
E) 13%