Compute interest rate for equivalent annual cash flows


The business plan for a start-up company that manufactures multigas portable detectors showed equivalent annual cash flows of $400,000 for the first 5 years. If the cash flow in year 1 was $320,000 and the increase thereafter was $50,000 per year, what interest rate was used in the calculation?

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Microeconomics: Compute interest rate for equivalent annual cash flows
Reference No:- TGS038977

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