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Suppose our investment cost 100 units. Assume that 40% equity and 60% credit are used for this. The nominal value of the equity (lets say,
Suppose our investment cost 100 units. Assume that 40% equity and 60% credit are used for this. The nominal value of the equity (lets say, the benefit-interest yield when we invest in treasury bills) is 15% and the interest rate of the loan is 12%. The inflation rate is at 5% level. In this case, what is the discount rate?
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