You shop around for the best interest rate and have narrowed your choices to the following:...
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You shop around for the best interest rate and have narrowed your choices to the following: Bank I: j₁ = 12% Bank II: J4 = 11.55% Bank III:j12 = 11.30% You wish to have $S in 3 years. What is the present value of S? Put the banks in order, from lowest to highest present value of S. You shop around for the best interest rate and have narrowed your choices to the following: Bank I: j₁ = 12% Bank II: J4 = 11.55% Bank III:j12 = 11.30% You wish to have $S in 3 years. What is the present value of S? Put the banks in order, from lowest to highest present value of S.
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Formula to calculate NPV NPV 11 r t r Interest rate t number of period NPV at Bank I ... View the full answer
Related Book For
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
Posted Date:
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