An investor invests £10,000,000 in a new factory, which takes a year to build. After construction is finished, the factory will generate an income of £110,000 monthly, received in arrears, for 10 years. Compute the yield of the investment project. Enter a percentage correct to 1 decimal place

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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An investor invests £10,000,000 in a new factory, which takes a year to build.

After construction is finished, the factory will generate an income of £110,000 monthly, received in arrears, for 10 years.

Compute the yield of the investment project.

Enter a percentage correct to 1 decimal place

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