To find the required rate of return, we can use the formula for the present value of a perpetuity, which is given by:
\[ PV = \frac{C}{r} \]
where:
- \( PV \) = Present Value (the amount you are willing to pay today)
- \( C \) = Cash flow per period (the annual payment)
- \( r \) = rate of return (as a decimal)
In this case, the present value \( PV = 41,601 \) and the cash flow \( C = 4,415 \).
Rearranging the formula to solve for \( r \):
\[ r = \frac{C}{PV} \]
Now substituting the known values:
\[ r = \frac{4,415}{41,601} \]
Calculating \( r \):
\[ r \approx 0.1067 \]
To express it as a percentage:
\[ r \approx 0.1067 \times 100 \approx 10.67% \]
Therefore, your required rate of return must be approximately 10.67%.