The return of any investment is measured by the difference of the value it was sold with the value it was bought.
It means:
[tex]R=B-S[/tex]Substituting the values, we have the following answer:
[tex]\begin{gathered} R=800,000-1,000,000 \\ R=\text{ \$}-200,000 \end{gathered}[/tex]From the solution developed above, we conclude that the return is negative. It was a return of $ -200,000
The percentage can be calculated as follows:
[tex]\begin{gathered} R_p=\frac{R}{B}\times100 \\ R_p=\frac{-200,000}{1,000,000}\times100 \\ R_p=-20\text{ \%} \end{gathered}[/tex]The return of the present investment is -20%