Question
a firm receives a five-year $1,000,000 loan at a subsidized rate of 3% per year. The firm will pay 3% interest each year and the
a firm receives a five-year $1,000,000 loan at a subsidized rate of 3% per year. The firm will pay 3% interest each year and the principal at the end of five years. If the firm's unsubsidized cost of debt is 6% per year, what is the NPV of the loan?
A. +126,371
B.+348,369
C.-501,595
D.-137,391
E.-$125,371
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Venture Capital And The Finance Of Innovation
Authors: Andrew Metrick
1st Edition
0470074280, 9780470074282
