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Suppose you buy a sleek Italian racing automobile (e.g. Fiat) and you have the choice...

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Accounting

Suppose you buy a sleek Italian racing automobile (e.g. Fiat) and you have the choice of paying the full price, $41,000, now; or $10,000 at the end of each of the next five years. What is the cost of capital, or the implied interest rate, that makes the two methods equivalent?

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