You have created your firm, and you need to finance your projects. These are the different sources
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Question:
You have created your firm, and you need to finance your projects. These are the different sources of financing that are available to you. Which one is less interesting for you? Consider an (annual) interest rate of 8.5%.
a. A unique payment of EUR 12,000 in one year.
b. 12 monthly payments of EUR 1,000 each one. The first payment is due the next month.
c. EUR 6,000 in one year, and EUR 6,000 in two years.
d. 4 quarterly payments of EUR 3,000 each one. The first payment is due the next quarter.
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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