Compares market capitalization-future earnings methods

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1. You have taken a loan of $185,000. You can afford to pay monthly payments of $1440.33. This loan will be repaid in 18 years. What is the nominal annual rate of interest charged on this loan?

2. Provide a narrative that compares market capitalization, book value, future earnings methods, and other methods mentioned) with each other.?

3. A decision tree shows a 30% probability of $5 million in returns and a 70% probability of $1 million in returns. What is the maximum you would invest today in this project if the cash in-flow occurs one year in the future and the discount rate is 10%?

Reference no: EM131990302

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