Question
Your friend is asking a $55,000 loan from you with the following repayment schedule: End of year 1 $ 0 End of year 2 $
Your friend is asking a $55,000 loan from you with the following repayment schedule: End of year 1 $ 0 End of year 2 $ 11,000 End of year 3 $ 22,000 End of year 4 $ 33,000 You demand at least 8% return on this loan deal. Answer to the following questions by showing your work using financial calculator keys. (a) Should you enter into this loan based on your PV (or NPV) analysis?
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Quantitative Financial Risk Management
Authors: Constantin Zopounidis, Emilios Galariotis
1st Edition
1118738187, 978-1118738184
