a) Cash Flow Diagram b) manual solution Company D borrowed $1.5 million to expand its packaging and shipping facility. The contract required the company to repay the lender through an innovative...

a) Cash Flow Diagram

b) manual solution

Company D borrowed $1.5 million to expand its packaging and shipping facility. The contract required the company to repay the lender through an innovative mechanism called “faux dividends”, a series of uniform annual payments over a fixed period of time. If the company paid $300,000 per year for 5 years, what was the interest rate on the loan?