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Assume an interest rate of 4% c.q for the NPV calculation Outgoing funds: (Expenses) 1) Re-Paying back the face valueof a $2,000,000 bond 2 years
Assume an interest rate of 4% c.q for the NPV calculation
Outgoing funds: (Expenses)
1) Re-Paying back the face valueof a $2,000,000 bond 2 years from the start of the project 2) Paying interest coupons quarterly at 3% c.q 3) Salaries of staff of $30,000 payable each month 4) Office expenses of $20,000 payable each month 5) Loan payments on a loan of $800,000 at 2% c.q. paid quarterly to be repaid in full in 2 years 6) Initial start up expenses for building and equipment of $500,000
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