Considering the Following Information, What Is the NPV If the Borrower

question 39

Multiple Choice

Considering the following information, what is the NPV if the borrower refinances the loan? Expected holding period: 3 years, Current loan balance: $100,000; Current loan interest: 7%; Current loan mortgage payment: $898.33; Remaining term on current mortgage: 15 years; New loan interest: 5.5%; New loan mortgage payment: $817.08; New loan term: 15 years; Cost of refinancing: $5,000. Assume that the opportunity cost is the interest rate on the new loan (5.5%) .

• A) -$5,000.00
• B) -$1,155.27
• C) $3,844.73
• D) $8,844.73

---

Definitions:

Nitrogen Metabolism Enzymes

Enzymes that play a role in breaking down and synthesizing nitrogen-containing compounds, critical for amino acid and nucleotide metabolism.

Reassurance

The act of removing someone's doubts or fears, often used in healthcare to help relieve patient anxiety.

Familiar Toys

Toys that are well-known and easily recognized by a child, which can provide comfort and a sense of security.

Hospitalization

The process of admitting a patient to a hospital for observation, treatment, or surgery.