$20 O= ? 2 3 4 5 Years SI0 Figure 2.11 Cash flow diagram

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Suppose you buy a share of stock for $10 and sell it for $20; your profit is thus $10. If that happens within a year, your rate of return is an impressive 100% ($10/$10 = 1). If it takes five years, what would be the rate of return on your investment? (See Figure.)

$20
O= ?
2
3
4
5
Years
SI0
Figure 2.11 Cash flow diagram
Transcribed Image Text:$20 O= ? 2 3 4 5 Years SI0 Figure 2.11 Cash flow diagram
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