Question
A. You are thinking of starting a company with investors. If your company would borrow $10,000,000 in a load to purchase a machine, the interest
A. You are thinking of starting a company with investors. If your company would borrow $10,000,000 in a load to purchase a machine, the interest rate was 5.5% annual (to be paid monthly) for 15 years. What would be the projected loan payments? Finally, if you were selling products from this machine at $72.50 per product, how many products per month would need to be sold to break-even on the new machine purchase (i.e. to pay for the monthly payments)
B. Now, If the company's sales were projected to be $375,000 per month, and the companys additional expenses from this purchase would be $272,945 per month- would this be a good investment for the company to buy this machine? How much profit or loss would the company have each month.
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