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Suppose you have another option of borrowing the $200,000 from a local bank. There is no stock purchase requirement, no processing fee, and the bank
Suppose you have another option of borrowing the $200,000 from a local bank. There is no stock purchase requirement, no processing fee, and the bank will absorb the appraisal fee. The bank will loan you the money on a 15-year Monthly payment plan for 4.80% annual interest.
1. Calculate the annual IRR of this cash flow stream. Which is the better deal (Bank or Credit Union), and why
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