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Assume an interest rate of 4% c.q for the NPV calculation Outgoing funds: lExEnsesl 1] RePaying back the face value of a $2,000,000 bond 2
Assume an interest rate of 4% c.q for the NPV calculation Outgoing funds: lExEnsesl 1] RePaying back the face value of 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 5] Initial start up expenses for building and equipment of $500,000 Incoming Funds [Revenues] 1] $2,000,000 bond from investors [referred to it 1} above) 2] $300,000 loan from bank [referred to in 5] above} 3] Revenue from product at $200,000 each quarter
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