In: Finance
A.
Wissler, Inc. owes $273,000 to the bank for some improvements made to its office building. The loan is for 60 months and the monthly payment is $5,945.79 What is the interest rate on the loan?
B.
Huggins Co. has identified an investment project with the following cash flows. |
Year | Cash Flow | |||||
1 | $ | 790 | ||||
2 | 1,070 | |||||
3 | 1,330 | |||||
4 | 1,450 | |||||
If the discount rate is 9 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
Present value | $ |
What is the present value at 17 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
Present value | $ |
What is the present value at 25 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
Present value |
$ |
A.
Wissler, Inc. owes $273,000 to the bank for some improvements made to its office building. The loan is for 60 months and the monthly payment is $5,945.79 What is the interest rate on the loan?
RATe | ? |
NPER | 60 |
PV | 273000 |
FV | 0 |
PMT | 5945.79 |
=RATE(60,5945.79,-273000,0,0)*12 | 11.07% |
Huggins Co. has identified an investment project with the following cash flows. If the discount rate is 9 percent, what is the present value of these cash flows?
What is the present value at 17 percent?
What is the present value at 25 percent? |
PV factor17% | PV | ||
1 | 790 | 0.800000 | 632.00 |
2 | 1070 | 0.640000 | 684.80 |
3 | 1330 | 0.512000 | 680.96 |
4 | 1450 | 0.409600 | 593.92 |
Present value | 2591.68 |