picklehead7389 picklehead7389
  • 26-03-2018
  • Business
contestada

What is the rate of return on an investment of $16,278 if the company expects to receive $3,000 per year for the next 10 years?

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MrsTriplet MrsTriplet
  • 04-04-2018
We have to use the internal rate of return (IRR) to solve this. This will allow us to see what to ROI is by seeing the interest occurring over the next 10 years.
ROI = 13%

It's best to use excel to break down the IRR, this will allow you to keep it on track finding the values for each year up to 10 years. 
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