Jogging Gear Is Considering a Project with an Initial Cash

question 125

Multiple Choice

Jogging Gear is considering a project with an initial cash requirement of $238,400. The project will yield cash flows of $4,930 monthly for 65 months. What is the rate of return on this project? 

• A) 9.97 percent 
• B) 11.38 percent 
• C) 14.28 percent
• D) 13.41 percent
• E) 10.56 percent 

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Definitions:

Truth Table

A mathematical table used to determine the truth value of a logic expression based on all the possible combinations of its variables.

Contingent

Dependent on or conditioned by something else; subject to chance or variability.

Formula

A mathematical relationship or rule expressed in symbols, typically used to solve problems or to define a process.

Truth Table

A mathematical table used in logic to determine the truth values of a logical expression based on the truth values of its inputs.