Period Bid rate. Offer rate 3 month. 2.5%. 2.75% 9 month 3.25%. 3.4% 12 month 3.5%. 3.55% A company enter a project in 3 month for 6 month, the company want to borrow $500, ooo for this period-At the end of this project, the company expect to deposit $600000 on the 9th month untill the end of the year. i. what is the contract rate for borrowing and deposit

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...
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Period Bid rate. Offer rate 3 month. 2.5%. 2.75% 9 month 3.25%. 3.4% 12 month 3.5%. 3.55% A company enter a project in 3 month for 6 month, the company want to borrow $500, ooo for this period-At the end of this project, the company expect to deposit $600000 on the 9th month untill the end of the year. i. what is the contract rate for borrowing and deposit
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