Calculate interest and principle for the payments

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Reference no: EM131072821

Consider following condition for previous question:

The investor takes $200,000 loan (at time zero) to purchase the machine at 6% interest rate. Loan has to be repaid by constant annual payments from year 1 to year 5 (5 payments).

Assume 38% tax and minimum rate of return 10%.

Calculate interest and principle for the payments, BTCF, ATCF, NPV and IRR for this investment.

Reference no: EM131072821

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