Suppose you can borrow money at an annual interest rate of 8%

Suppose you can borrow money at an annual interest rate of 8% but can save money at an annual interest rate of only 5%. If you start with zero capital and if the yearly cash flows of an investment are −1 , 000 , 900 , 800 , −1 , 200 , 700 , should you invest?

 

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Suppose you can borrow money at an annual interest rate of 8% was first posted on March 29, 2020 at 6:14 pm.
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