A large firm received a loan guarantee from the government. Due to the guarantee, the...
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A large firm received a loan guarantee from the government. Due to the guarantee, the firm can borrow $80 million for five years at 10 percent interest rate per year instead of 12 percent per year. Calculate the value of the guarantee to the firm. (Ignore taxes.) Multiple Choice $5.97 million +$5.77 million +$85.77 million $5.77 million
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