A project returned 30 then minus30 thus its arithmetic


A project returned +30%, then −30%. Thus, its arithmetic average rate of return was 0%. If you invested $25,000, how much did you end up with? Is your rate of return positive or negative? How would your overall rate of return have been different if you first earned –30% and then +30%?

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Financial Accounting: A project returned 30 then minus30 thus its arithmetic
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