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Credit unions
Credit unions are non-profit institutions jointly organised and owned by their members (depositors). Their main objective is to satisfy the depository and lending requires of their members, who have to belong to a particular group (identified by occupation, association, geographical location). The members' deposits are used to provide loans to other members, and earnings from these loans are used to pay a higher rate of interest to member depositors. They are the most numerous amid the institutions composing depository institutions totalling about 8535 in 2006 according to the Credit Union National Association.
BAGS, Inc. is considering an investment in a new project. The required investment is $1,000,000. After-tax net cash flows are expected to be $50,000 the first year and are expected
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Individual/Borrower Rating This includes rating a borrower to whom a loan/credit facility may be sanctioned.
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