Consider a project with a study period of 25 years. A sum of $800k has been borrowed to pay for the capital cost at the start of the project. The loan is to be repaid in 25 equal annual payments made at the end of each year, starting from the 1st year. The loan interest rate is 5% p.a. The project starts earning revenue of $75k p.a. starting from the 1st year; all revenue cashflows are end-of-year. MARR is 12% p.a. (a) Determine the annual loan payment amount using the appropriate interest rate. (6 marks) (b) What is the remaining balance of the loan after 10 years? (6 marks) (c) Should both the capital cost and annual loan repayments be included in the cashflow to evaluate the project's feasibility? What is the net future value of the project at the end of the study period? Is the project feasible? (6 marks) (d) What is the minimum annual revenue to achieve an end-of-project worth of $500k after making the annual loan repayment amounts, and get a MARR of 10% p.a? (7 marks) Consider a project with a study period of 25 years. A sum of $800k has been borrowed to pay for the capital cost at the start of the project. The loan is to be repaid in 25 equal annual payments made at the end of each year, starting from the 1st year. The loan interest rate is 5% p.a. The project starts earning revenue of $75k p.a. starting from the 1st year; all revenue cashflows are end-of-year. MARR is 12% p.a. (a) Determine the annual loan payment amount using the appropriate interest rate. (6 marks) (b) What is the remaining balance of the loan after 10 years? (6 marks) (c) Should both the capital cost and annual loan repayments be included in the cashflow to evaluate the project's feasibility? What is the net future value of the project at the end of the study period? Is the project feasible? (6 marks) (d) What is the minimum annual revenue to achieve an end-of-project worth of $500k after making the annual loan repayment amounts, and get a MARR of 10% p.a? (7 marks)