Luo Co. is considering a project which has an initial cash requirement of $187,400. The project will yield cash flows of $2,832 monthly for 84 months. What is the rate of return on this project?
1) 6.97 percent
2) 7.04 percent
3) 7.28 percent
4) 7.41 percent
5) 7.56 percent
2) 7.04 percent
| Rate of return | = | =rate(nper,pmt,-pv)*12 | Where, | ||
| = | 7.04% | nper | 84 | ||
| pmt | $ 2,832 | ||||
| pv | $ 1,87,400 | ||||
Luo Co. is considering a project which has an initial cash requirement of $187,400. The project...