RT is about to loan his granddaughter Cynthia $20,000 for 1 year. RTs TVOM, based upon his

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RT is about to loan his granddaughter Cynthia $20,000 for 1 year. RT’s TVOM, based upon his current investment earnings, is 8 percent. Cynthia’s TVOM, based upon earnings on investments, is 12 percent.

a. Should they be able to successfully negotiate the terms of this loan?

b. If so, what range of paybacks would be mutually satisfactory? If not, how far off is each person from an agreement?

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Principles Of Engineering Economic Analysis

ISBN: 9781118163832

6th Edition

Authors: John A. White, Kenneth E. Case, David B. Pratt

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