A Project Involves an Immediate Expenditure of $1 000, and Will

Multiple Choice

A project involves an immediate expenditure of $1 000, and will require additional expenditures of $100 a year for the next ten years, starting one year from now. After ten years it yields an income of $3 000. What is its rate of return?

A) 3.5%
B) 4.5%
C) 5.5%
D) 6.5%
E) 7.5%