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QUESTION 17 To evaluate the value of loans, we have to use the knowledge from the beginning of the course. Please use the excel sheet
QUESTION 17 To evaluate the value of loans, we have to use the knowledge from the beginning of the course. Please use the excel sheet to calculate the NPV of a $100 loan earning 8% over 10 years (the customer pays 8% each year), if the discount rate is 5%. Always make an educated guess first: Is such a "security" attractive or unattractive? Will it be sold above or below face value? Calculate to 2 decimals
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