Project a 15000 investment bank loan 9 interest rate annual


Project A: 15,000 investment. Bank loan, 9% interest rate annual, monthly payments.

Project B: 2,000 cash investment, plus 150 delivery, 650 installation.

No required rate of return given, no equity. Cost of debt after tax 8%

Can NPV be calculated on project B? Since no debt would be necessary to invest, only cash.

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Financial Management: Project a 15000 investment bank loan 9 interest rate annual
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