For question 3
Why are they considering the EAR from perspective of borrower whereas bank is lender here?? Since they have added net option cost to loan amount (if he were a lender then he would have deducted 31050 from 60 million), i was assured they have considered this loan from borrower side.
My question is since we are worried about Casford Bank’s side and he is a lender then why we considered loan from borrower perspective?
Am i wrong here?