Essay
An investment of $180 000 yields annual net returns of $27 700 for seven years. What is the rate of return on the investment (correct to the nearest tenth of a percent) if part of the initial investment, in the amount of, $80 000 is recovered at the end of 7 years?
a) Use linear interpolation to find the approximate value of the rate of return.
b) Find the answer using Cash Flow and IRR.
Correct Answer:

Verified
PVOUT = 180 000 - 80 000
;
PVIN = 27 700
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Correct Answer:
Verified
PVIN = 27 700
View Answer
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