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You currently have a 6% mortgage with a remaining term of 12 years and a remaining balance of $2,000,000. You can refinance this loan at
You currently have a 6% mortgage with a remaining term of 12 years and a remaining balance of $2,000,000. You can refinance this loan at an interest rate of 5%, but it will cost you $23,000 in closing costs. You plan to own the property for 6 more years. Given the above information, answer the below question:
What is the NPV of refinancing?
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