At the end of each year for the next 8 years you will receive cash...
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Finance
At the end of each year for the next 8 years you will receive cash flows of $500. The initial investment is $2,500. Which of the following is the correct equation to find the rate of return (r) you are expecting from this investment?
A.
r = ($2,500/$500) [1 1/(1+r)8]
B.
$2,500 = $500 [1/(1+r)8 1] / r
C.
$500 = $2,500 [1 1/(1+r)8] / r
D.
$2,500 = $500 [PVIFA(r%,8)]
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