A borrower is faced with choosing between two loans. Loan A is available fof $75,000 at6 percent interest for 30 years, with 6 points to be included in closing Costs. Loan B would bemade for the same amount, but for 7 percent interest for 30 years, with 2 points to be included inthe closing costs. Both loans will be fully amortizing. a. If the loan is repaid after 20 years, which loan is the better choice?
b. If the loan is repaid after 5 years, which loan is the better choice?
c. Suppose the lender includes a prepayment penalty of 4 percent in the mortgage loan. If the loan is repaid after 5 years, which loan is the better choice

Ancho corp. is an automobile company whose core competency lies in manufacturing petrol- and diesel- based cars. the company realizes that more of its potential customers are switching to electric cars. the r& d department of the company acquires competencies in developing electric cars and launches its first hybrid car, which uses both gas and electricity. in this scenario, ancho is primarilya. leveraging new core competencies to improve current market position. b. redeploying existing core competencies to compete in future markets. c. unlearning existing core competencies to create and compete in markets of the future. d. building new core competencies to protect and extend current market position