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AAA is planning to raise $3.25 million for three years at an interest rate of 7.35 percent to finance their expansion. The cuban County Board
AAA is planning to raise $3.25 million for three years at an interest rate of 7.35 percent to finance their expansion. The cuban County Board of Commissioners has just offered the firm the $3.25 million they need at 5.25 percent if the firm builds in cuban County, pays the interest annually, and repays the principal at the end of three years. What is the net present value of the loan to AAA if the firm's tax rate is 21 percent and it accepts the county's offer?
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