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You have borrowed $20,000 from a bank to buy a car from Chase at the interest rate of 7.5% each year. In the next three

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You have borrowed $20,000 from a bank to buy a car from Chase at the interest rate of 7.5% each year. In the next three years, you will make a payment of $8, 719 each year to Chase. Please draw the cash flow diagram. Please calculate the NPV0. How is the deal for borrowing money from Chase? You have bought a share of stock A at the price of $200 per share. Each share is going to pay dividends of $20 per year. You will sell the stock in the end of year 3 at the price of $280 per share. The annual discount rate is 10%. Please draw the cash flow diagram. Please find out the NPV0 for this project. Do you want to buy this stock

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