Unformatted text preview: $792.95 (at year 1, year 2 and year 3). If the credit card company gives you an annual rate of 12% per year, how many years until your credit card is paid off? Question 3: You are a marketing executive looking to see if you wish to take on a new project. Your boss tells you that in order to take on a project, the company must earn at least 10% (effective) per year. The project would have an initial cost of $500,000 and another cost one year from today of $200,000. The project would start to generate cash three years from today and would have an equal stream of cash every month forever. How much cash does this project need to generate in order to get that 10% effective rate of return?...
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This note was uploaded on 12/02/2011 for the course FIN 3300 taught by Professor Toddstotnitch during the Fall '11 term at Georgia State.
 Fall '11
 ToddStotnitch
 Corporate Finance, Interest, Interest Rate

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