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Zax decides to go through with setting up this repair and support...

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Asked by abdirahman150 on coursehero.com

Zax decides to go through with setting up this repair and support...

Zax decides to go through with setting up this repair and support service. However, it turns out that some of his estimates above were not accurate:

  • The estimated startup cost of $29,000 was correct.
  • The first level quarterly payment Zax receives will be exactly 3 months from the start of this service (and not 6 months as Zax estimated).
  • However, the level quarterly payment Zax would receive is more likely to be 2769.2875682923.
  • These quarterly payments are still expected to only last for 3 years.

Again, ignoring the compensation he is paying to Banner, determine the return Zax is earning on this repair and support service, expressed as a nominal annual rate compounding quarterly. Give your answer as a percentage to 4 decimal places.

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Answered by goyalashish on coursehero.com
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