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Loans from the financial institutions:
Financial institutions such as the commercial bank life insurance corporation, industries financial development corporation bank of the India also short terms medium terms and long terms loan. this source of the finance is more suitable to meet the medium terms demand of the working capital. Interest is changed on such loan such s loan at a fixed rate and the amount of the loan is to be repaid by the way of installment in a number of the years.
Sarkozy Ltd is considering the selection of one of a pair of mutually exclusive investment projects. Both would involve purchase of machinery with a life of five years. Projec
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