Question
1)Platinum Water Packaging just bought a new bowling alley for 499,262 dollars. To pay for the bowling alley, the company took out a loan that
1)Platinum Water Packaging just bought a new bowling alley for 499,262 dollars. To pay for the bowling alley, the company took out a loan that requires Platinum Water Packaging to pay the bank a special payment of 29,400 dollars in 3 months and also make regular monthly payments forever. The first regular payment is expected in 1 month and all subsequent regular payments are expected to increase by 0.63 percent per month forever. The interest rate on the loan is 1.87 percent per month. What is the payment expected to be in 1 month?
2)Emily owns a(n) trampoline park that is worth 114,243 dollars and is expected to make annual cash flows forever. The cost of capital for the trampoline park is 12.75 percent. The next annual cash flow is expected in one year from today and all subsequent cash flows are expected to grow annually by 4.69 percent. What is the cash flow produced by the trampoline park in 5 years from today expected to be?
3)Sasha has an investment worth 10,036 dollars. The investment will make a special payment of X to Sasha in 6 years from today. The investment also will make regular, fixed annual payments of 1,200 dollars to Sasha with the first of these payments made to Sasha later today and the last of these annual payments made to Sasha in 7 years from today. The expected return for the investment is 7.63 percent per year. What is X, the amount of the special payment that will be made to Sasha in 6 years?
answer the three please
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