Calculate the rate of return represented by the cash flow

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Question: A $50,000 investment yields annual payments of $22,000, $18,000, $2, 400, $2, 500 and $35,000 at the end of the next 5 years respectively. Calculate the rate of return (ROI) represented by this cash flow to three significant figures. If you were offered an additional $2,000 at the end of one of the five years, and you could choose the year, which would be the best year and what would be the new ROI?

Reference no: EM131928287

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