Reference no: EM131310373
Loan Amortization
Using the Loan Amortization Schedule on the excel sheet, respond to the following questions.
Loan 1:
Principal borrowed: $100,000
Total Payments: 30 years (360) Annual interest rate= 5%
Start date of the loan: 1/1/2020
1. What is the monthly payment (Principal and interest)?
2. What is the total interest paid?
3. Total of 360 Payments?
4. At what payment number does the amount going to the actual principle exceed the amount allocated toward paying interest?
Loan 2: Principal borrowed: $250,000
Total payments: 15 years (180 months) Interest rate= 7%
Start date of the loan: 1/1/2020
1. What is the monthly payment (Principal and interest)?
2. When making payment number 24, how much of your payment is going toward interest?
3. After paying on the loan for 5 years, you have made 60 payments. When you make your 61st payment, is at least half of your payment going toward paying down the principal of the loan?
Now, using the NPV and IRR Calculator tab on the excel sheet, enter the following information, and respond to the following questions:
This type of document can be used to evaluate capital projects that are going to be depreciated over a specific period of time, in this case, 7 years. Your initial investment is always a negative number, because it is money that is going out to purchase the required items for the project.
The IRR (internal rate of return) is then compared against the cost of capital. The cost of capital can be looked at as your benchmark to approve this project. The number represents the amount of money you truly make once you discount the future cash flows. For our purposes here, if the IRR of your project is less than what you could make with investments, you should reject the project.
Investment: $500,000 (remember, this is cash spent, so it needs to be entered as a negative number)
Cash Flows: $100,000 each year for 7 years
Cost of Capital: 11%
1. What is the NPV of this project? Would you approve it?
2. What is the IRR? Now, change the Cost of Capital to 8%
3. Explain in no more than 150 words, why the IRR stays the same, but the NPV is now positive?
What is your best estimate of the velocity on the centerline
: Write down (in text, not Matlab code) how you are solving this problem. I want the numerical details on how you construct your matrix equation etc. What is your best estimate of the velocity on the centerline, i.e., u(0)
|
What would the fourth field of the tripwire database contain
: Tripwire does not provide a wildcard mechanism suitable for saying, "all files in the directory /usr/spool/lpd beginning with cf or df." Suggest a modification of the tripwire configuration file that would allow this.
|
What is the present value of this commitment
: When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star c..
|
Company applies the profitability index decision rule
: The Sloan Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (I) Cash Flow (II) 0 –$ 61,000 –$ 18,300 1 28,100 9,950 2 28,100 9,950 3 28,100 9,950. If the required return is 10 percent, what i..
|
Principle exceed amount allocated toward paying interest
: What is the monthly payment (Principal and interest)? What is the total interest paid? Total of 360 Payments? At what payment number does the amount going to the actual principle exceed the amount allocated toward paying interest?
|
Project has the cash flows
: A project has the following cash flows: Year Cash Flow 0 –$ 16,700 1 7,400 2 8,700 3 7,200. What is the NPV at a discount rate of zero percent? What is the NPV at a discount rate of 30 percent?
|
Compare the concept of a modern supply chain
: Compare the concept of a modern supply chain with more traditional distribution channels. Be specific regarding similarities and differences.
|
Who are the stakeholders in this situation
: Who are the stakeholders in this situation ?hat factors may impact the increase or decrease of health services supply and demand in your county?Provide an example of a supply and demand curve to describe the health care utilization in your county.
|
What is percentage change in the price of these bonds
: Both Bond Bill and Bond Ted have 11.4 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 5 years to maturity, whereas Bond Ted has 22 years to maturity. Both bonds have a par value of 1,000. If interest rates sudden..
|