Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 41

Laura's grandparents helped her purchase a small self-serve laundry business to make extra money during her 5 college years. When she completed her engineering management degree, she sold the business and her grandparents told her to keep the money as a graduation present. For the net cash flows listed below, determine the following:
a) The percentage of the investment recovered during the 5 years
b) The actual rate of return over the 5-year period
c) How long it took to pay back the $75,000 investment in year 0, plus a 7% per year return