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will rate FIN475 19. An investor earned a 1.2% rate of return in two months. The investor's EAR (effective annual rate, or compounded annualized rate
will rate
FIN475 19. An investor earned a 1.2% rate of return in two months. The investor's EAR (effective annual rate, or compounded annualized rate of return) is: a. 6.12% b. 7.20% c. 7.42% d. 8.01% e. 12.00% 20. Which of the following would be a source of cash in a statement of cash flows? a) An increase in inventory b) An increase in accounts receivable c) A decrease in accrued expenses. d) An increase of accounts payable e) Both a and b are correct 21. Project S costs $200,000 and is expected to produce annual cash flows of $24,000 for five years plus an additional one-time cash flow of $200,000 at the end of year five. The cost of capital of the project is 6%. The NPV of project S is a. $50,548 b. $101,097 c. $120,000 d. $200,000 e. $250,548 Step by Step Solution
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