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You borrow $240 k from a bank to be repaid in 5 annual payments of $59 k plus a final balloon payment of $100 due
You borrow $240 k from a bank to be repaid in 5 annual payments of $59 k plus a final balloon payment of $100 due at the same time as the last payment. Determine the Questions fo. a) net present worth (NPW) of the loan from the banks point of view assuming an interest rate of 4 % b) equivalent uniform annual worth (EUAW) of the loan from the banks point of view assuming an interest rate of 4 % c) rate of return (ROR) the bank is receiving on this loan by using Excel or similar
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