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What will be your decision criteria

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Question - In order to finance its expansion project, company ABC plans to borrow $900,000. She receives two proposals from two different financial institutions:

Proposal 1: A 15-year loan with a quarterly repayment of $21,500.

Proposal 2: A 15-year loan with a monthly repayment of $7,500.

a. What will be your decision criteria? in other words, on what basis are you going to make your choice of proposal?

b. Which proposal should she accept?

Reference no: EM133135495

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