What interest rate should be applied to monthly cash flows, Financial Management

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What interest rate should be applied to monthly cash flows

If a firm states that the annual MARR to be used in analysis of projects is 12.5% but requires that all cash flows be presented and evaluated on a monthly basis because of the dynamics of the market in which the firm operates, what interest rate should be applied to the monthly cash flows when calculating the present worth of a project in percentage terms with 4 digits after the decimal point?

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Financial Management: What interest rate should be applied to monthly cash flows

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