Determine the interest rate to be charged

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Reference no: EM132036905

Determine the interest rate to be charged on a $100,000 loan that faces:

i. Administrative costs = 2%

ii. Funding costs = 5%

iii. Risk bearing costs = 1%

iv. Fees = 0.5%

2. If the internal rate of return exceeds the discount rate, then the net present value of a project is

a. positive.

b. negative.

c. zero.

d. one.

Reference no: EM132036905

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