Question: (b) Let us evaluate the proposal that you borrow rather than pay cash using present value calculations. Do this by calculating the present value

(b) Let us evaluate the proposal that you borrow rather than pay cash using present value calculations. Do this by calculating the present value of your car payments if you pay cash (that is just the cash payment) and the present value of your car payments if you take out the car loan (think carefully about which interest rate to use in this present value calculation).

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