If the average annual after tax cash flow was $5,101, the after tax net proceeds from sales was $89,514, the initial equity was $60,000 and n was 5, then what is the approximate yield?
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A. B. C. D.D
Approximate yield =
[($5,101 + (($89,514 - $60,000) / 5)] / (($89,514 + $60,000) / 2) = 14.7%
To calculate the approximate yield, we need to use the formula