Question
Fancy Cat Products has a project that will cost $247,500 today and will generate monthly cash flows of $5,435 for the next 60 months. What is the rate of
return of this project when expressed as an APR?
Multiple Choice
13.07%
10.55%
11.75%
9.96%
11.43%

Image Transcription

Fancy Cat Products has a project that will cost $247,500 today and will generate monthly cash flows of $5,435 for the next 60 months. What is the rate of return of this project when expressed as an APR? Multiple Choice 13.07% 10.55% 11.75% 9.96% 11.43%

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Finance

Time Value

Related Finance Q&A

Find answers to questions asked by students like you.

Q: How much should you invest into an account with 3.2% interest compounded quarterly if you want to re...

A: We need to use the concept of time value of money to solve the question. According to the concept of...

Q: XYZ corp borrowed $3,500 from a bank on May 16. The loan was discounted at 10% and was to be repaid ...

A: a) Computation:

Q: Why is it important for an investor to create a well-diversified investment portfolio? How should an...

A: It is suggested to investors not to put all eggs in single bucket so to avoid risk of losing all of ...

Q: How much do you need to deposit into an account with 5.4% interest compounded monthly if you want to...

A: Click to see the answer

Q: Find 1. Payback 2. Discounted payback. Compare the two methods.   WACC: 9.00%             Year ...

A: year  cash flows 0 -1200 1 350 2 480 3 -10 4 830 5 -20 6 1200 WACC 9%

Q: Nike had sales of $42 billion in 2019. Suppose you expect its sales to grow at a rate of 4% forever....

A: The question is to find value of share by use of discounting of the free cash flow concept , as  

Q: A firm is trying to decide between two location alternatives, Albany and Baltimore. Albany would res...

A: Particulars Alternative A ($) Alternative B ($) Sales @ 9,000 units 450,000 432,000 Less: Labor ...

Q: The financial pages of the local newspaper helped Lanasia in identifying that she can buy a bond ($1...

A: Annual interest payments are the coupon amount which the investors would get on the par value of the...

Q: #20 IRR You are offered to participate in a project that produces the following cash flows: C0- $5,0...

A: If the internal rate of return is higher than the cost of capital, the project should be accepted. I...