Question
One of the incentives provided by Vietnam to attract IBM into setting up a local production facility is a 9-year, USD70 million loan at 5.5%.
One of the incentives provided by Vietnam to attract IBM into setting up a local production facility is a 9-year, USD70 million loan at 5.5%. The principal is to be repaid at the end of the 9th year. The market interest rate on such a loan is 12.0%. With a marginal tax rate of 25.0%, how much is this loan worth to IBM?
a.USD20,458,780.03 million
b.USD18,182,652.41 million
c.USD27,278,373.37 million
d.USD25,098,435.21 million
e.USD24,243,536.55 million
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Beyond Greed And Fear Understanding Behavioral Finance And The Psychology Of Investing
Authors: Hersh Shefrin
1st Edition
0195161211, 978-0195161212
