Question 1. (40%) You would like to take out a $250,000 loan to start a business. The bank is offering…

Question 1. (40%) You would like to take out a $250,000 loan to start a business. The bank is offering you a 5 year loan at 5.5% annual interest with quarterly payments. Note: The interest rates given here and in part 3 are annual values. Use the APR convention for rate conversion.

1.     Create a spreadsheet model with time line to calculate your payment and interest paid in each quarter.

2.     Create spreadsheet models similar to the above model to explore the effect of loan amortization periods of 4, 5, and 6 years on the payment and interest paid in each quarter.

3.     Cash flow will be tight when your business first gets started. Create a spreadsheet model and use Goal Seek with a 6% loan with quarterly payments to find out the number of quarters you should get for the loan to keep the payment no more than $10,000 (set up your goal as $5,000, $8,000 and $10,000). Round the quarter number up to the closest integer. What will be the quarterly payment for this loan?

Question 2. (30%) Suppose a company is about to start the following project, where all the dollar figures are in thousands of dollars. In year 0, the project requires a fixed cost of $11,000. The fixed costs is depreciated on the straight-line basis over five years, and there is a salvage value of $1,000 in year 5. The sales generated in years 1-5 are estimated to be 2,000 units, 3,000 units, 4,500 units, 3,500 units and 1,500 units. The costs of capital in years 1-5 are forecast to be 9.0%, 8.7%, 8.4%, 7.8% and 7.5%. The tax rate is forecast to be a constant 35.0%. Sales revenue per unit is forecast to be $8.80. Variable cost per unit is forecast to be $6.20. What is the project NPV? Develop your financial spreadsheet model with frozen panes for detailed calculations.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Lets Write For You
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat