Question
Imagine you are the financial manager for a corporation purchasing farm equipment costing $600,000. The following questions pertain to this financial decision. 1. () You
Imagine you are the financial manager for a corporation purchasing farm equipment costing $600,000.
The following questions pertain to this financial decision. 1. () You approach two different banks for a loan of $100,000 to finance the purchase of this equipment. Farm Credit charges 12% APR compounded monthly. CoBank charges 11.95% APR compounded daily. Which bank should you use for the loan? Justify your choice mathematically and briefly explain.
please help!!
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International Business Finance
Authors: Michael Connolly
1st Edition
0415701538, 9780415701532
