What is abc realized rate of return

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Reference no: EM132596586

ABC Pty (Ltd) invests in capital worth $ 40 000 in January 2020. In December 2020 this capital will be worth $ 12 000. ABC receives worth $ 45 000; wages paid to ABC employees is $ 5000, and the opportunity cost of the time to do business is $ 8 000.

Given the following above, what is ABC's realized rate of return?

Select one:

A. 4

B. 1.11

C. 0.1

D. 2.25

E. 0.88=

Possible formula to use: realized rate of return or rrr = (Revenues - other costs - Economic depreciation) / Investment

Reference no: EM132596586

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