66 67 70 71 72 73 74 Exercise 5 If you purchase a machine and borrow $10000, what will your approximate monthly payment be if you pay back the loan over 5 years. Assume a 10% interest rate. Submit your answer. 80 Exercise 6 81 84 85 86 87 88 You are considering purchasing a new machine for $144000 that will save $27000 per year for 8 years. If cost of capital is 12%, what is the net present value (NPV) of buying the new machine? Submit your answer. 91 Should you purchase the machine? No Correct! 93 94 Exercise 7 95 98 99 100 101 108 You are considering investing in a project that will require an initial capital outlay of $100000 and generate annual cash flows of $15575 for 10 years. What is the internal rate of return (IRR) for this project? Submit your answer. 109 110 Exercise 8 If you borrow 5900000 to purchase a home, what do you expect your monthly payment will be? Assume a 30 year mortgage and a fixed 7% interest rate Submit your answer. 113 114 115 116 117 118 131 1-12 Ready Page: 1 of 2 tab esc aps lock DQ QS EX PA BYN Class Notes Q A 28 20 12 F3 #3 @2 W E S 54 000 600 F4 % 25 D R 20 LL F C M T Z C V alt H control option command