Cost of debt for the short-term loans and ignoring

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Question: Loan Payments (Swiss Francs) Year 1 Year 2 Year 3 Year 4 Year 5 5-Year Loan at 8.00% 3,200,000 3,200,000 3,200,000 3,200,000 43,200,000 3-Year Loan at 6.00%, 2-Year Loan at 11.00% 2,400,000 2,400,000 2,400,000 4,400,000 44,400,000 Suppose that the annualized cost of financing with the shorter-term loans is approximately 7.78%. Based on this cost of debt for the short-term loans and ignoring uncertainty, Curry is more likely to choose to opt for the short-term loans

Reference no: EM133610984

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