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You shop around for the best interest rate and have narrowed your choices to the following: Bank I: j = 12% Bank II: J4
You shop around for the best interest rate and have narrowed your choices to the following: Bank I: j = 12% Bank II: J4 = 11.55% Bank III:j12 = 11.30% You wish to have $S in 3 years. What is the present value of S? Put the banks in order, from lowest to highest present value of S.
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Formula to calculate NPV NPV 11 r t r Interest rate t number of period NPV at Bank I ...
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Introduction to Corporate Finance What Companies Do
Authors: John Graham, Scott Smart
3rd edition
9781111532611, 1111222282, 1111532613, 978-1111222284
