You need to borrow $2,000 quickly, and the local pawn shop will give it to you if

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You need to borrow $2,000 quickly, and the local pawn shop will give it to you if you promise to repay them $200.92 monthly over the next year. Suppose that the pawn shop's cost of funds is 12%, compounded monthly.

What is the NPV of this deal?

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Posted Date: Apr 14, 2023 12:01 AM

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You need to borrow $2,000 quickly, and the local pawn shop will give it to you if

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To calculate the Net Present Value NPV of this deal we need to discount the future cash flows repaym... View the full answer

Fundamentals of Corporate Finance

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