https://s3-eu-west-1.amazonaws.com/t...20160905152636. When answering Q2, I have been using the formula: Avergae Annual Return / Inital cost of Project x 100. However I got an answer of 35% whereas the correct is 10.58%. Can someone else explain why this is the case.
But the graph shows you get ~170k and spend 130k.
I'm guessing you should use the 40k difference rather than the 170k in the formula.