00:01
Hello everyone, in this question they have asked that calculate the rate of return for an investment with the following characteristics.
00:07
So here they have given initial cost.
00:12
Initial cost they have given which is equal to 20 ,000 and also here they have given project life.
00:26
Project life which is equal to 10 years and here they have given annual receipt.
00:36
Project annual receipt which is equal to 6 ,000 and here they have given total disbursement.
00:51
Total disbursement which is equal to 3 ,000.
01:02
So here they have asked that rate of return for an investment.
01:06
So for that they have an equation.
01:11
Rate of return is equal to total receipts.
01:21
Total receipts minus total disbursement.
01:33
Total disbursement upon initial cost upon initial cost raised to 1 upon number of years number of years minus.
02:03
So this is our formulae.
02:05
Now here first we are going to find out here total receipts.
02:11
Total receipts is equal to annual receipt into project life.
02:17
So annual receipt is 6 ,000 into project life is 10.
02:26
Here it is 60 ,000...