econ 101

econ 101

an energy management system that can save 7,500 per year for four years, expenses are 2,000 per year, installed at a cost of 20,000. At the end of 4 years it is expected to be sold for 1,250. using the end of year convention, the rate of return on this planned investment is most nearly:

a. ROR = 9.5%
b. ROR = 10%
c. ROR = 9.81%
d. ROR = 6%