A factory is worth

$75,400.00

. It is expected to produce equal monthly cash flows of

$7,966.39

for 8 months with the first monthly cash flow expected in 1 month. The factory is also expected to make an extra cash flow of

$14,900.00

in 8 months. What is the monthly cost of capital for the factory?\

0.98%

(plus or minus

10bps

)\

0.82%

(plus or minus

10bps

)\

2.97%

(plus or minus

10bps

)\

2.51%

(plus or minus

10bps

)\ none of the answers are within 10 bps of the correct answer

A factory is worth $75,400.00. It is expected to produce equal monthly cash flows of $7,966.39 for 8 months with the first monthly cash flow expected in 1 month. The factory is also expected to make an extra cash flow of $14,900.00 in 8 months. What is the monthly cost of capital for the factory? 0.98% (plus or minus 10bps ) 0.82% (plus or minus 10bps ) 2.97% (plus or minus 10bps ) 2.51% (plus or minus 10bps ) none of the answers are within 10bps of the correct