The answer is $19,090. As Hebaelrify has already shown the equation, I’ll attempt to explain why this is the right answer. A rate of return is how much of the money you get back as a profit. This is something that all companies and investors have to take into account. It’s basically what an investor gets back, when all is said and done.
To get a return of 8%, the project has to do fairly well - especially if 8% is $2,500. Without knowing the factors that typically go into an initial cash outlay formula, you have to work backwards to figure out what the cash outlay was. However, it is incredibly difficult to do, so kudos to Hebaelrify for showing that.
