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Question 4 25 pts Bob's dad offers to give him one of the following two options: a cash gift of $15,000 or an interest free
Question 4 25 pts Bob's dad offers to give him one of the following two options: a cash gift of $15,000 or an interest free loan of $60,000. The Joan is repaid in five equal annual payments over the subsequent five years. Assume Bob's opportunity cost of funds is 5.0%. In present value terms, which option is better for Bob and how much better is it? The cash gilt, by 56.053.72 The loan, by $21.307.58 D The loan, by $12.988.43 The cashift, by $32.809.50
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