Should core inc refinance now if the discount rate


Finance Problem

Core Inc. borrowed a loan of $4,500,000 at 10% for 25 years term with 3% prepayment penalty five years ago. Recently, a new loan is available at contract rate of 8.5% for 20 years with 4% origination fees. Should Core Inc. refinance now if the discount rate is 6.5%?

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