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pentagon [3]
3 years ago
8

Fancy Cat Products has a project that will cost $241,000 today and will generate monthly cash flows of $5,730 for the next 55 mo

nths.
What is the rate of return of this project when expressed as an APR?


a. 12.47%


b. 10.41%


c. 12.10%


d. 13.83%


e. 11.17%
Business
1 answer:
olchik [2.2K]3 years ago
5 0

Answer:

Option C is correct one.

<u>The rate of return of this project when expressed as an APR is 12.10%</u>

Explanation:

Here initial cost of project pv = -$241,000

monthly payment pmt = $5,730

time nper = 55 months

Monthly rate of return RATE = RATE(nper,pmt,pv)

= RATE(55,5730,-241000)

= 1.01%

 

APR = 12* monthly rate of return = 12*1.01% = 12.10%

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Explanation:

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8 0
3 years ago
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masha68 [24]

Answer:

Debit Petty Cash $250; credit Cash $250

Explanation:

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Debit Petty Cash $250

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5 0
3 years ago
You expect to receive year-end bonuses of $8,000 at the end of this year, $16,000 at the end of year 4, $20,000 at the end of ye
yulyashka [42]

Answer:

Total PV= $46,728.79

Explanation:

Giving the following information:

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Cf1= $8,000

Cf4= $16,000

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Cf10= $25,000

Discount rate= 6%

To calculate the present value, we need to use the following formula on each cash flow:

PV= FV/(1+i)^n

Cf1= 8,000/(1.06^1)= 7,547.17

Cf4= 16,000/(1.06^4)= 12,673.50

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Answer:

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