Calculate the rate of return earned over the unspecified


1. For the investment shown in the following table, calculate the rate of return earned over the unspecified time period.

Cash flow during period $950

Beginning-of- period value 12,300

End-of- period value $13,100

The rate of return on the investment is %___

2. you are comparing two seprate invesments. each one is for a period of 10 years and pays 2.500 a year. you require 10 percent return on these invsments. Invesement A pays at the begining of each year and investment B pas at the end of each year. Given this situation, which one of the following statment is accurate:

a. both invsment are equally valuble today.

b. insment b is worth more today because of the timing of its cash flows.

c.Invsement A is worth more today because you wil recive ten payments hwereas invsment B only pays nine payments

d. insment B has both a higher present value and a higher future value than invsment B

e. insment a has a higher present value and lower future value than invsment B.

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Financial Management: Calculate the rate of return earned over the unspecified
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