You are offered a chance to buy an asset for $7,250 that is expected to produce cash flows of $750 at the end of Year 1, $1,000 at the end of
Year 2, $850 at the end of Year 3, and $6,250 at the end of Year 4. What rate of return would you earn if you bought this asset?
A) 4.93%
B) 5.19%
C) 5.46%
D) 5.75%
E) 6.05%

Question

Quizplus · Accepted Answer

The Answer of You are offered a chance to buy an asset for $7,250 that is expected to produce cash flows of $750 at the end of Year 1, $1,000 at the end of
Year 2, $850 at the end of Year 3, and $6,250 at the end of Year 4. What rate of return would you earn if you bought this asset?
A) 4.93%
B) 5.19%
C) 5.46%
D) 5.75%
E) 6.05%

You Are Offered a Chance to Buy an Asset for $7,250