The expected rate of return over the project will be 30.67%; whereas, the cash payback for the same will be 3.12 years.
A financial ratio used to calculate the returns over monetary engagement during a financial period is generally regarded as the rate of return over such investment.
Using the given information, the expected rate of return will be computed as,
[tex]\rm Rate\ of\ Return= \dfrac{Net\ Income}{Investment}\ x\ 100\\\\\rm Rate\ of\ Return= \dfrac{92000}{300000}\ x\ 100\\\\\rm Rate\ of\ Return= 30.67\%[/tex]
Similarly, when such return is earned, the cash payback will be computed as,
[tex]\rm Cash\ Payback= \dfrac{Investment}{Cash\ Inflow}\\\\\rm Cash\ Payback= \dfrac{300000}{92000}\\\\\rm Cash\ Payback= 3.125[/tex]
Hence, the expected rate of return over the project will be 30.67%; whereas, the cash payback for the same will be 3.12 years.
Learn more about rate of return here:
https://brainly.com/question/24232401
#SPJ2
