The table below lists all of the investment opportunities fo

The table below lists all of the investment opportunities for the businesses of a small island country Instructions: Round your answers to 1 decimal place a. Calculate the expected rate of return for each project and fill in these values in the table. ionsRate of Return $16 Project Project Cost Expected Net (Millions) (Percent) $14 23 24 31 7.5 20 19 b. If the nominal interest rate for investment borrowing is 9 percent and the expected rate of inflation is 3 percent what will be tne of it

Solution

Expected rate of return for A=(16-14)÷14×100=14.28%

ERR of B=(9-8)/8*100=12.5%

ERR of C=(24-23)/23*100=4.35%

ERR of D=(33-31)/31*100=6.45%

ERR of E=(7.5-7)/7*100=50/7=7.1%

ERR of G=(20-19)/19*100=100/19=5.23%