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You have decided to purchase a small industrial warehouse. The purchase price is $ 1 million, and you expect to hold the property for five
You have decided to purchase a small industrial warehouse. The purchase price is $ million, and you expect to hold the property for five years. You have narrowed your choice of debt financing to packages to the following two alternatives: $ loan, percent interest rate, year term, annual, interest only payments the annual payment will not include any amortization of principal and $ in upfront financing costs. $ loan, percent interest rate, year term, annual, interest only payments. No upfront financing costs. Required: What is the difference in the present value of these two loan alternatives? Assume the appropriate discount rate is percent. Note: Do not round intermediate calculations. Enter your answers in dollars, rather than in millions of dollars. The answer is not $ please help!
You have decided to purchase a small industrial warehouse. The purchase
price is $ million, and you expect to hold the property for five years. You have
narrowed your choice of debt financing to packages to the following two
alternatives:
$ loan, percent interest rate, year term, annual, interest
only payments the annual payment will not include any amortization of
principal and $ in upfront financing costs.
$ loan, percent interest rate, year term, annual, interest
only payments. No upfront financing costs.
Required:
What is the difference in the present value of these two loan alternatives?
Assume the appropriate discount rate is percent.
Note: Do not round intermediate calculations. Enter your answers in dollars,
rather than in millions of dollars.
The answer is not $ please help!
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