Question: Luo Co. is considering a project which has an initial cash requirement of $187,400. The project will yield cash flows of $2,832 monthly for 84

Luo Co. is considering a project which has an initial cash requirement of $187,400. The project will yield cash flows of $2,832 monthly for 84 months. What is the rate of return on this project?

1) 6.97 percent

2) 7.04 percent

3) 7.28 percent

4) 7.41 percent

5) 7.56 percent

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