A project is expected to generate annual revenues of $117,700, with variable costs of $74,800, and fixed costs of $15,300. The a
1 answer:
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Answer:
5.52%
Explanation:
Cost of Furniture= $150,000
discount= 5.25% (120-day note)
To get the exporter's true effective annual financing cost, we have:
=(150,000/147,375) 365/120-1 = 5.52%
Therefore, the exporter's true effective annual financing cost is 5.52%