Mac arranges financing for a load of contraband weapons he, Business Economics

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Mac arranges financing for a load of contraband weapons he

Mac arranges financing for a load of contraband weapons he plans to sell to the rebels. The terms of the loan are as follows:

The bank will provide Mac $76,000 today. Each year, for the next 15 years, Mac must pay the bank $12,400. Mac has a real discount rate of 20%.

What is the net present value of this finance arrangement to Mac?

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Business Economics: Mac arranges financing for a load of contraband weapons he

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