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Dear John,
Requirements of the question Daikon are straighforward, and I solved it without problem with only one difference. I calculated net effective interest rate (EIR) and then net cost. However, Bpp answer includes calculation of the difference between net EIR and current borrowing rate (4.3%).
Could you please explain why in this question it is required to calculate changes in additional cost?Regards
It is because the question asks for a response to the CEO’s request in the first paragraph of the question. She asks for the extra cost 🙂
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