Zax decides to go through with setting up this repair and support service. However, it...
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Finance
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 2739.3240294879.
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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