Calculate the Effective annual interest rate of the MARR

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Reference no: EM131007851

GoBulls Media is considering opening a new manufacturing facility to process and mail coupons to 660,000 households in the Tampa Bay area. The new facility will require an initial investment of $240,000 and an annual operating cost of $22,000. It will have a $86,500 salvage value after 5 years. Calculate the Effective annual interest rate of the MARR if the company's minimum attractive rate of return is 5% per year, compounded monthly.

Reference no: EM131007851

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