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A factory is worth $3,200. It is expected to produce equal monthly cash flows of $300...

A factory is worth $3,200. It is expected to produce equal monthly cash flows of $300 for 9 months with the first monthly cash flow expected later today. The factory is also expected to make an extra cash flow of $1,000 in 7 months. What is the monthly cost of capital for the factory?

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Answer #1

Let monthly cost of capital ar - 3200 = 300 + 300 [1-(1+r) 1+ 1000 > 300 [-(ty) 3] + 1000 (1+r)7 - 2900 (to) 7 - Solving essi

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