Question
Based on the information provided below, compute the Net Present Value of the project (CO 3). A Net Present Value Template is Attached. (Hint: Don't
Based on the information provided below, compute the Net Present Value of the project (CO 3). A Net Present Value Template is Attached. (Hint: Don't forget to update the discount rate to the amount required for this project and add your cash flow numbers.) Royal Dutch Shipping is planning on Investing $1,600,000 to buy a freighter. Prepare a net present value analysis based on the assumption that the freighter will be sold for 10% of its cost at the end of the year 5. Assume a 10% cost of capital. Annual operating cash flows for the project are: Year 1: $380,000 Year 2: $390,000 Year 3: $400,000 Year 4: $410,000 Year 5: $420,000
Prepare a loan amortization schedule based onmonthlypayments for the $1,600,000 if Royal Dutch Shipping can pay 10% down on a loan for $1,600,000 and can get a loan for 6% interest for 10 years (do not include this in your Net Present Value computations. This is a separate issue. (CO 3). (Hint:www.bankrate.com/calculators/mortgages/amortization-calculator.aspx)
Instructions:Prepare the homework in Excel template provided. Save your assignment file as 'LastnameFirstinitial-FINC300-3", and submit by 11:55 pm ET, Day 7 (Sunday).
Your assignment will be graded according to the following Grading Rubric:
Grade | Homework Problems Grading Criteria |
90-100% |
|
80-89% |
|
70-79% |
|
60-69% |
|
0-59% |
|
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