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QUESTION 11 Company A is currently cash-constrained, and must make a decision about whether to delay paying one of its suppliers, or taking out a
QUESTION 11 Company A is currently cash-constrained, and must make a decision about whether to delay paying one of its suppliers, or taking out a loan. They owe the supplier $11.494, and they can borrow the money from Bank A, which has offered to lend the firm $11.494 for 1 month(s) at an APR (compounded) of 15%. The bank will require a (no-interest) compensating balance of 8% of the face value of the loan and will charge a $225 loan origination fee, which means Hand-to-Mouth must borrow even more than the $11,494? NOTE: Answer in percentages. If your answer is 0.0204, you must answer 2.04. Do not use the "%" sign
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