9. In the project finance pro forma of section 3.9 it is assumed that the firm pays

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9. In the project finance pro forma of section 3.9 it is assumed that the firm pays off its initial debt of 1,000 in equal installments of principal over five years. Change this assumption and assume instead that the firm pays off its debt in equal payments of interest and principal over five years. Hint: You have to use the PMT function to find the annual payments; then set up a loan table (as in Chapter 1) to split the annual payments into an interest and repayment of principal.

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Financial Modeling

ISBN: 9780262024822

2nd Edition

Authors: Simon Benninga

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