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Tom's Tubas must raise $30000 in order to buy the equipment needed for the marching band project. If Tom s takes out a 1-year loan
Tom's Tubas must raise $30000 in order to buy the equipment needed for the marching band project. If Tom s takes out a 1-year loan for $30000, then which, if any, of these cash flows should be incorporated in the NPV analysis of the project? a. Loan principal of $30000 received from the lender today. b. Interest payments of $2000 per year paid to the lender in 1 year and in 2 years. c. Repayment of the principal of $30000 paid to the lender in 2 years(Enter a or b or c if any of the above and "None" if none of the above options are correct.)
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