b. Mr LEO's father has made a will to give him an amount of $500,000 in...
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b. Mr LEO's father has made a will to give him an amount of $500,000 in 10 years .So Leo wants to borrow an amount from the bank to set up a fashion boutique in the nearest town. The business planner told him that he does not expect the present discount rate to change in these 10 years. The following information is given regarding the discount rate GDP growth of the country 1.2% Beta 1.8 Index in January 2020 16,570 17,590 Index in December 2020 Inflation 2.5% REQUIRED How much should he borrow from the bank now if he is planning to pay back the loan with the money he will get in 10 years of business return? b. Mr LEO's father has made a will to give him an amount of $500,000 in 10 years .So Leo wants to borrow an amount from the bank to set up a fashion boutique in the nearest town. The business planner told him that he does not expect the present discount rate to change in these 10 years. The following information is given regarding the discount rate GDP growth of the country 1.2% Beta 1.8 Index in January 2020 16,570 17,590 Index in December 2020 Inflation 2.5% REQUIRED How much should he borrow from the bank now if he is planning to pay back the loan with the money he will get in 10 years of business return?
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Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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