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Question - You are considering an investment into Challenge Transportation Co. of $400 for a 12.5% share in the company at the beginning of 2022. Below you can see the projected value of your investment for the next 5 years.
2022
2023
2024
2025
2026
2027
$40,000
$48,000
$52,000
$58,500
$67,500
$62,000
Required -
a) What is the projected average annual return rate of the investment?
b) What is the projected compounded annual growth rate?
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