Ann got a 30 year FRM with annual payments equal to $24,000. After 2 years of payments Ann will refinance the balance into a 28 year FRM with annual payments equal to $20,000. Refinancing will cost Ann $5,500. Ann will prepay the new loan 3 years after refinancing. She will save $2,500 on her loan balance when she prepays. Using all the information given, write the NPV formula for Ann's refinancing decision if her annual discount rate is. Plug in all the numbers you can. Only plug-in one final net cash-flow for each time period. Feel free to omit periods when the net cash-flow is zero.

Ann got a 30 year FRM with annual payments equal to $24,000. After 2 years of payments Ann will refinance the balance into a 28 year FRM with annual payments equal to $20,000. Refinancing will cost Ann $5,500. Ann will prepay the new loan 3 years after refinancing. She will save $2,500 on her loan balance when she prepays. Using all the information given, write the NPV formula for Ann's refinancing decision if her annual discount rate is. Plug in all the numbers you can. Only plug-in one final net cash-flow for each time period. Feel free to omit periods when the net cash-flow is zero