Fancy Cat Products has a project that will cost $264, 400 today and will generate monthly cash flows of $5,500 for the next 73 months. What is the rate of return of this project when expressed as an APR?

Fancy Cat Products has a project that will cost $264, 400 today and will generate monthly cash flows of $5,500 for the next 73 months. What is the rate of return of this project when expressed as an APR?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 1P

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Fancy Cat Products has a project that will cost $264, 400 today and will generate monthly cash flows of $5,500 for the next 73 months. What is the rate of return of this project when expressed as an
APR?

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