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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%

  • Assigned exercises/problems are completed in full.
  • Work demonstrates effective application of the concepts/principles covered in the chapter.
  • Work thoroughly explains answers and calculations.
  • Solutions are calculated with no errors or insignificant errors.

80-89%

  • Assigned exercises/problems are completed in full or are significantly complete.
  • Work demonstrates effective application of most concepts/principles covered in the chapter.
  • Work thoroughly explains most answers and calculations.
  • Solutions are calculated with insignificant errors.

70-79%

  • Assigned exercises/problems are mostly complete.
  • Work demonstrates effective application of some concepts/principles covered in the chapter.
  • Work explains some answers and calculations.
  • Solutions are calculated with significant errors.

60-69%

  • Assigned exercises/problems are fairly complete.
  • Work demonstrates effective application of a few concepts/principles covered in the chapter.
  • Work explains a few answers and calculations.
  • Solutions are calculated with significant errors.

0-59%

  • Assigned exercises/problems are less than 50% complete.
  • Work does not demonstrate effective application of the concepts covered in the chapter.
  • Work submitted does not thoroughly explain answers and calculations.
  • Solutions are not calculated or are calculated with significant errors.

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