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A)You consider taking a long-term loan for your business, and a friend advises you to use the effective interest rate for your calculations. Will the
A)You consider taking a long-term loan for your business, and a friend advises you to use the effective interest rate for your calculations. Will the effective interest rate be higher than the stated interest rate? Explain why or why not.
B)What does discounting cash flows mean and what question does it answer?
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