User Account

All Pages

Calculate the two emi options and choose the best one

Assignment Help Finance Basics
Reference no: EM132523664

A Pharma company has recently recruited 4 scientists at an average age of 27 and is looking to develop quite a few pharmacological formulations. With a view to retain them the company proposes to offer a housing scheme to them on the following terms and conditions:

1. The number of beneficiaries will be four in number

2. The total cost of purchasing apartments will be Rs.1 crore

3. PNBHFL offers an 18 year term @ 9.00% interest and HDFC offers 15 years term @ 8% interest.

4. The company will pay the housing finance company on an installment basis.

5. A Down payment of 5% of the cost of the apartment has to be made and recoverable from the employee in 24 installments. The upfront payment will be made by the company.

6. In case of availing the loan from HDFC, 50% of the installment will be recovered from the employee on a monthly basis and in case of availing the loan from PNBHFL 45% will be recovered from the employee. The option of choosing the service rests with the company only.

7. Assume that employee deductions happen on the first day of the month and housing loan payments made by the company happens on the last day of the year.

8. The housing loan is offered on a fixed interest basis and EMI will not change.

9. Assume the individual apartments are of equal value.

Question : You are called upon to do the following:

1. Calculate the two EMI options and choose the best one.

Reference no: EM132523664

Questions Cloud

What are the main advantages of using multiple models : Through the chapters Five and Six case studies, Figure 5.1 is an illustration of the future state of practice of systems modeling and simulation.
Organizational risk appetite and risk assessment : Describe the process of performing a risk assessment. Elaborate on the approach you will use when performing the risk assessment.
Discussing the health implications of the issue : Discussing the health implications of the issue and explaining why it is of concern in Canada - highlighting the strengths and limitations of the article
Describe the importance of data representation : According to Kirk 2019, in order to dissect the importance of data representation, we are going to "look at it from both theoretical and pragmatic perspectives.
Calculate the two emi options and choose the best one : A Pharma company has recently recruited 4 scientists at an average age of 27 and is looking to develop quite a few pharmacological formulations.
What is the coompany operating leverage : What is the coompany's operating leverage? A company sells 150,000 units at $60 a unit with a variable cost of $30 a unit. It has $1 million in fixed costs
Sales for particular cosmetic line : Based on historical data, sales for a particular cosmetic line follow a continuous uniform distribution with a lower limit of $2,500 and an upper limit of $5,00
Discuss quantitative and qualitative methodology : Quantitative data can be measured and documented with numbers. Additionally, quantitative data can be represented as quantities. On the other hand.
Investigate involving potential monetary fraud : You have been assigned a digital forensics case to investigate involving a potential monetary fraud in an organisation.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd