1) Manufacturing company borrows 5 million euros from the bank to fight the consequences of the flu pandemic . The repayment schedule is based on an annuity. The interest rate is 10% and the loan is paid back with 6 annual payments.

* What is the loan balance immediately the first loan payment is made?

2)You are analysing a capital investment project. You forecast the following cash-flows:

year01234cash flow+200-10+50What is the maximum investment you are willing to make into this project today if your required return is 10% per year (e.g. cost of capital)

3)The company's sales revenue forecast for next year is 2.25 million euros. The net profit margin is estimated at 12%. The company's total assets are forecasted to be 1.8 million euros. Finally, Debt to equity ratio (D/E) is equal to 1.0. Find the company's approximate ROA?

4)Manufacturing company borrows 8 million euros from the bank to fight the consequences of the corona virus. The repayment schedule is based on an annuity. The interest rate is 8% and the loan is paid back with 6 annual payments.

Question:

* What is the loan balance immediately the first loan payment is made

5)Your task is to find the value of a coupon bond. You have the following information: The par value of the bond is 500 eur, the coupon rate is 4% and the required rate of return from equally risky bonds is 6%. The bond has exactly 5 years to maturity.