WG Investors is looking at three different investment opportunities. Investment one is a? five-year investment with...

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WG Investors is looking at three different investmentopportunities. Investment one is a? five-year investment with acost of
?$260 and a promised payout of $520 at maturity. Investment twois a? seven-year investment with a cost of ?$260 and a promisedpayout of
?$702. Investment three is a? ten-year investment with a cost of?$260 and a promised payout of ?$1,196.
WG Investors can take on only one of the three investments.Assuming that all three investment opportunities have the samelevel of? risk, calculate the effective annual return for each?investment, and select the best investment choice.
What is the effective annual return for investment? one, a?five-year investment with a cost of ?$260 and a promised payout of$520 at? maturity?

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When the investments have the same level of risk then effective annual return can be calculated by the following formula Effective annual return Maturity value of the investment Cost of the investment Cost of See Answer

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WG Investors is looking at three different investmentopportunities. Investment one is a? five-year investment with acost of?$260 and a promised payout of $520 at maturity. Investment twois a? seven-year investment with a cost of ?$260 and a promisedpayout of?$702. Investment three is a? ten-year investment with a cost of?$260 and a promised payout of ?$1,196.WG Investors can take on only one of the three investments.Assuming that all three investment opportunities have the samelevel of? risk, calculate the effective annual return for each?investment, and select the best investment choice.What is the effective annual return for investment? one, a?five-year investment with a cost of ?$260 and a promised payout of$520 at? maturity?