An initial investment of $500 produces a cash flow of $550 one year from today.Calculate the rate of return on the project.
A)10%
B)15%
C)20%
D)25%

Name: An initial investment of $500 produces a cash flow of $550 one year from today.Calculate the rate of return on the project. A)10% B)15% C)20% D)25%
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Question

Quizplus · Accepted Answer

The rate of return is calculated as (Cash flow - Initial investment) / Initial investment * 100. In this case, the rate of return is (550 - 500) / 500 * 100 = 10%.

An Initial Investment of $500 Produces a Cash Flow of $550