Business, 28.12.2019 06:31 nickeymcorrea

An investment in the mezzogiorno will receive a subsidized loan of $12 million from the italian government. the loan bears an interest rate of 7% in contrast to a market rate of 10%. the loan principal must be paid back in 8 years. what is the present value of the interest subsidy?

a) $360,000
b) $1.92 million
c) $2.31 million
d) $870,000

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An investment in the mezzogiorno will receive a subsidized loan of $12 million from the italian gove...

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