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If one chooses to take on debt, they can do it by loans that have (1) annual payments on the principal of the loan (2) interest payments each year with principal paid at the end or (3) no interest payments until the end when interest and principal is paid. Assume that the MARR is equal to the interest rate of the debt and the maturity of debt is assumed to be the life of the asset. What is the difference between these three options?

Business Economics, Economics

  • Category:- Business Economics
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