Why would GMAC be willing to accept such a small amount today ($500) in exchange for a

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Why would GMAC be willing to accept such a small amount today ($500) in exchange for a promise to repay 20 times that amount ($10,000) in the future?

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Fundamentals Of Corporate Finance

ISBN: 9780072553079

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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Question Posted: Oct 03, 2023 01:02 PM

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Why would GMAC be willing to accept such a small amount today ($500) in exchange for a

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The scenario youre describing where GMAC General Motors Acceptance Corporation accepts 500 today in exchange for a promise to repay 10000 in the futur...View the full answer

Fundamentals Of Corporate Finance

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