For the investment shown in the following table, calculate the rate of return earned over the unspecified time period. Cash flow during period Beginning-of- period value End-of- period value $370 $42,400 $36,500 The rate of return on the investment is enter your response here%

For the investment shown in the following table, calculate the rate of return earned over the unspecified time period. Cash flow during period Beginning-of- period value End-of- period value $370 $42,400 $36,500 The rate of return on the investment is enter your response here%

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 1CMA

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Question

For the investment shown in the following table, calculate the rate of return earned over the unspecified time period.

Cash flow during period	Beginning-of- period value	End-of- period value
$370	$42,400	$36,500

The rate of return on the investment is

enter your response here%

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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