Dighton Corporation Is Considering Issuing a 4 Year $500,000 Noninterest

Essay

Dighton Corporation is considering issuing a 4 year $500,000 noninterest bearing note,a 4 year annual payment,8 percent face rate,$500,000 installment note,or a 4 year,$500,000,10 percent note.If the market interest rate is 8 percent answer the following:
A.Which note will generate the most cash and which will generate the least?
B.Which note is the most expensive way to borrow fund?