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Compare the annual cash outflows of the two payments

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The cost of the equipment for the project is $18,000, and he will finance the purchase with a 7.5% loan over six years. Originally, the loan called for annual payments. Redo the payments based on quarterly payments (four per year) and monthly payments (twelve per year). Compare the annual cash outflows of the two payments. Why does the monthly payment plan have less total cash outflow each year?

Reference no: EM131234367

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