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here is everything you need to know about Band of investment method and the SFF, please excuse the formatting (copied from word)
Band of Investment
- Basically just WACC with no taxes, and possibly need to calculate SFF
Mortgage constant = rD = SFF + INT
To solve for SFF:
? N = number of mortgage compounding periods
? i = periodic interest rate (int/m)
? PV = 0
? FV = -1
? Solve for PMT, PMT |
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