Consider the project balances in following Table for a typical investment project with a service life of four years. Cash Project Period Flow Balance $ (5,200) $ (5,200) $ (3,780) $ (547) $ 3,771 $ 3,600 $ 7,937 2. 3. Determine the interest rate used in computing the project balance. O 1496 10% 896 None of these

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter11: The Cost Of Capital
Section: Chapter Questions
Problem 19PROB
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Consider the project balances in following Table for a typical investment project with a service life of four years.
Project
Balance
Cash
Period
Flow
$ (5,200) $ (5,200)
$ (3,780)
$ (547)
$ 3,771
$ 3,600 $ 7,937
1
3.
Determine the interest rate used in computing the project balance.
O 1496
O 10%6
896
O None of these
Transcribed Image Text:Consider the project balances in following Table for a typical investment project with a service life of four years. Project Balance Cash Period Flow $ (5,200) $ (5,200) $ (3,780) $ (547) $ 3,771 $ 3,600 $ 7,937 1 3. Determine the interest rate used in computing the project balance. O 1496 O 10%6 896 O None of these
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