An Investment Costs $1,000 (CF at T = 0) and Is

Multiple Choice

An investment costs $1,000 (CF at t = 0) and is expected to produce cash flows of $75 at the end of each of the next 5 years,then an additional lump sum payment of $1,000 at the end of the 5th year.What is the expected rate of return on this investment?

A) 6.77%
B) 7.13%
C) 7.50%
D) 7.88%