Question
1=Corner Restaurant is considering a project with an initial cost of $211,600. The project will not produce any cash flows for the first three years.
1=Corner Restaurant is considering a project with an initial cost of $211,600. The project will not produce any cash flows for the first three years. Starting in Year 4, the project will produce cash inflows of $151,000 a year for three years. This project is risky, so the firm has assigned it a discount rate of 18.0 percent. What is the project's net present value? (if it is negative use - sign.)
7- Sunrise Coffee just borrowed $160,000 to build a new shop. This mortgage calls for equal annual payments at the end of each year. The loan is for 20 years at an APR of 8.25 percent. How much of the first annual payment will be used to reduce the principal balance?
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