Working capital and maintenance of good current ratio

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1. Warren's Diner needed a new location. This establishment spent $65,000 to refurbish an old shop and create the current facility. The firm borrowed 75 percent of the refurbishment cost at 8 percent interest for 11 years. What is the amount of each monthly payment?

2. Your parents would like to establish a trust fund that would pay annual payments to you of $50,000 a year forever. The fund will earn a guaranteed return of 8 percent. How much do your parents need to deposit into this trust fund today to achieve their goal?

3. If a company is a monopoly and subsidized by government, does that change the need for working capital and the maintenance of a good current ratio?

Reference no: EM131972634

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