Question
3)You need to borrow $2,000 quickly, and the local pawn shop will give it to you if youpromise to repay them $200.92 monthly over the
3)You need to borrow $2,000 quickly, and the local pawn shop will give it to you if youpromise to repay them $200.92 monthly over the next year. Suppose that the pawn shop's cost of funds is 12%, compounded monthly. From its viewpoint, what is the NPV of this deal? A)$261.37 B)$226.17 C)$292.01 D)$44.11 E)$111.01
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Corporate Finance With Connect Access Card
Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe
10th Edition
1259672484, 978-1259672484
