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Which of the following would yield the highest return per annum on your investment? O 50 years ago, your parents purchased a house for $300,000
Which of the following would yield the highest return per annum on your investment? O 50 years ago, your parents purchased a house for $300,000. Today it is worth $1.500.000 • 20 years ago you purchased an ornament for $1.500. Today it is valued by Christie's at $12.000 O 9 years ago, you purchased a luxury bag for $6,000. Today you can sell it on elay for $14.000 O 5 years ago, you purchased a vintage car for $100.000. Today it is valued at $200,000 O 1 year ago, you purchased a share for $10.00. The price of the same share today is $11.50 Previous Next th Frytenberg.pdf
Question 3 2 pts An asset generates a cash flow of $2 million every 6 years continuing forever, with the first cash flow occurring in 3 years' time. What is the value of the site appropriate discount rate is 8% pa. compounded semi-annually?
Expert Solution
By using Return on Investment formula we can find which is highest
here the answer is Second option
Explination:
1)For first option Return on Investment = 400%
2) For second option Return on Investment = 740%
3) For third option Annualized Return on Investment = 133.33%
4) For fourth option Annualized Return on Investment = 85.19%
5)For Fifth option Annualized Return on Investment = 15%
So the answer is second one.
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