You want to purchase a car worth $35k. You decided to put down a downpayment of $5k. Your loan amount is $30k with an interest rate of 4.5% with a 5 yr life of the loan. After 2 yrs, you decided to refinance. The amount for refinancing is $18,785.73 with a new interest rate of 4% for a 4 year life of the loan. 

Based on NPV, is it worth refinancing?

Answer rating: 100% (QA)

SOLUTION To determine if refinancing is worth it based on NPV Net Present Value we need to calculate ... View the full answer