Question
Assume an interest rate of 6% c.m for the NPV calculation. The entire project is over 1 year Outgoing funds: (Expenses) 1) Re-Paying back the
Assume an interest rate of 6% c.m for the NPV calculation. The entire project is over 1 year
Outgoing funds: (Expenses) 1) Re-Paying back the face value of a $3,000,000 bond repayable 1 year from the start of the project 2) Paying interest coupons quarterly at 4% c.q 3) Salaries of staff of $30,000 payable each Month 4) Office expenses of $4,000 payable each Month 5) Loan payments on a loan of $500,000 at 3% c.q. paid quarterly to be repaid in full in 1 years 6) Initial start up expenses for building and equipment of $600,000
Show the value of EACH fund and the corresponding Equation detailing than the value of the fund is determined. Each Fund value and Equation
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