Question
Ben wants to set up his own DJ business. He has done the research and knows he needs to borrow $6200 to buy equipment to
Ben wants to set up his own DJ business. He has done the research and knows he needs to borrow $6200 to buy equipment to get it started. He wants to keep the total cost down as much as possible.
Option A: 4 year amortization at 7.8%
Option B: 5 year amortization at 6.3%
What option should he choose? What should be his payment frequency? What are the disadvantages of this choice?
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International Financial Management
Authors: Cheol Eun, Bruce G. Resnick
8th edition
125971778X, 978-1259717789
