17. A start-up company that makes hydraulic seals borrowed $800000 to expand its packaging and shipping facility. The contract required the company to repay the investors through an innovative mechanism called faux dividends, a series of uniform annual payments over a fixed period of time. If the company paid $250000 per year for 5 years, what was the interest rate on the loan?

17. A start-up company that makes hydraulic seals borrowed $800000 to expand its packaging and shipping facility. The contract required the company to repay the investors through an innovative mechanism called faux dividends, a series of uniform annual payments over a fixed period of time. If the company paid $250000 per year for 5 years, what was the interest rate on the loan?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 17P

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