Borrow the money for this investment

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In Financial Management, is the Rate of Return interest calculated the same as the interest rate the would be given by a bank or lender?

Your neighborhood self-service laundry is for sale and you consider investing in this business. For the business alone and no other assets (such as building and land), the purchase price is $240,000. The net cash flows for the project are $30,000 per year for the next 5 years. You plan to borrow the money for this investment at 5%.

Reference no: EM132459272

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