The following situation describes two investment alternatives:

Set up a complete financial plan for the investment of the BMC Minerva under the following conditions: The investment is financed with € 5,000 equity; the difference is financed by a loan at 6 %, credit interest 5 %. The repayment of the loan occurs at three equal annual rates, beginning at the end of the first year.

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Initial outlay Economic life in years Cash flow per period HL Securitas 8,000 2 5,000 BMC Minerva 21,000 9,000