Calculating npv of the loan


A small business is receiving a five-year $1,000,000 loan at a subsidized rate of 3% per year. The firm will pay 3% annual interest payment each year and the principal at the end of five years. If market interest rate on similar loans is 6% per year, what is the NPV of the loan? (Ignore taxes)

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Finance Basics: Calculating npv of the loan
Reference No:- TGS024702

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