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Raid must decide between two competing loan offers from two of its banks. initiation fees up-front, for the same term and principal. Both banks reset

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Raid must decide between two competing loan offers from two of its banks. initiation fees up-front, for the same term and principal. Both banks reset the interest rate at the end of each year. upward at the rate of 0.250 percentage points per year. Raid Gauloises's cost of capital is 11%. Which loan proposal do you recommend for Raid Gauloises

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