How much money do you get for this promisenbsp - how does


Assume now that the loan does not provide $25,000, but rather promises to pay off $25,000.

(a) Repeat the table in the text that summarizes all the information.

(b) How much money do you get for this promise?

(c) What is the promised rate of return?

(d) How does the riskiness of the project "Full Building Ownership" compare to the riskiness of the project "Levered Building Ownership"?

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