NEWS would like to compare two different parcels, each of which is tied to a specific lender's
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Question:
NEWS would like to compare two different parcels, each of which is tied to a specific lender's terms. (a) Provide your recommendation on which is the best and support your recommendation. (b) Explain how your answer might change if NEWS was concerned with short-term profit margins. Explain how would your answer might change if NEWS is concerned with long-term debt, due to a poor book value rating from the most recent stock analysis?
Parcel Green has the following conditions: Cost=$10,000,000; Annual Interest Rate: 11%; Years: 25
Parcel Blue has the following conditions: Cost=$7,500,000; Annual Interest Rate: 20%; Years: 15
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