Solved: The annual cost of capital or interest rate for this type, Finance Basics

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The annual cost of capital or interest rate for this type

Tony invested $380,000 in a new business 7 years ago. The business was expected to bring in $6,000 each month for the next 26 years (in excess of all costs). The annual cost of capital (or interest rate) for this type of business was 8% with monthly compounding. What is the value of the business today?

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Finance Basics: The annual cost of capital or interest rate for this type

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