BackInSoon, Inc., has estimated that a proposed project's 8-year annual net cash benefit, received each year end, will be $3,500 with an additional terminal benefit of $5,000 at the end of the 8th year. Assuming that these cash inflows satisfy exactly BacklnSoon's required rate of return of 10%, calculate the initial cash outlay. $21,004.78 $19,578.27 $30,000.00 $40,000.00 $23,434.70 A Miami Company has negotiated a $1,000,000 revolving credit agreement with National Bank. The agreement calls for an interest rate of 6% on fund used, a 10% compensating balance, and a commitment fee of 1% on the unused amount of the credit line. Assuming that the compensating balance would not otherwise be maintained, the effective annual interest cost if the firm borrows $300,000 for one year is closest to \begin{tabular}{l} \hline 10.00% \\ \hline 20.40% \\ \hline None of them \\ \hline 8.00% \\ \hline 11.76% \\ \hline 9.26% \end{tabular}