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One of the incentives provided by Vietnam to attract IBM into setting up a local production facility is a 7 -year, USD79.4 million loan at
One of the incentives provided by Vietnam to attract IBM into setting up a local production facility is a 7 -year, USD79.4 million loan at 7.60%. The principal is to be repaid at the end of the 7th year. The market interest rate on such a loan is 8.88%. With a marginal tax rate of 19.9%, how much is this loan worth to IBM? a. USD52.215 million b. USD65.187million c. USD71.701million d. USD72.551million e. None of the options in this question are correct
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