KP invested R4 million to acquire land to plant pine trees. The trees will be harvested...
KP invested R4 million to acquire land to plant pine trees. The
trees will be harvested in 10 years’ time, at which KP plans to
sell the forest at a price of R8 million.
Required:
1. Determine the WP’s expected rate of return
Homework Answers
Expected Rate of return = (Return - Initial Investment)/Initial Investment
= (8 million - 4 million)/4 million
= 100%
Hence, expected rate of return = 100%
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