Compute what is the rate of return on the purchase

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Problem 1: An investor deposits $150,000 into a retirement account. They feel they need $1,200,000 when they retire in 20 years. What return must they earn to make their goal? b) An investment promises an annual income of $35,000 for 15 years. The investment costs $350,000 upfront. What is the implied rate of return on this investment? c) A company is considering purchasing an $85,000 piece of equipment that will save them $20,000 per year for five years. In the final year, they anticipate being able to sell (salvage) the old equipment for $15,000. What is the rate of return on this purchase?

Reference no: EM132767358

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