The rate of return on the investment

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Reference no: EM131514970

Assume you are told that by investing $100,000 now, you will receive $10,000 per year starting in year 5 and continuing forever. If you accept the of- fer, the rate of return on the investment is:

a. 4% per year

b. between 6% and 7% per year

c. between 7% and 10% per year

d. over 12% per year

Please explain your answer

Reference no: EM131514970

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