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don't do it with excel please Problem 1 (10 points) A sportswear manufacturing company has embarked on a project to open new outlets that requires
don't do it with excel please
Problem 1 (10 points) A sportswear manufacturing company has embarked on a project to open new outlets that requires an investment of $300,000. A financial institution granted him this amount as a debt over a period of 5 years. The interest rate applied on this loan is 4% with half-year capitalization. one. Calculate the effective interest rate on the company's loan? (2 points) b. What is the monthly amount to be reimbursed by the company? (2 points) c. What is the amount of interest to be paid during the entire period of the loan? (2 points) d. What is the balance of the loan after 2 years? (2 points) e. The company expects to generate from this $300,000 investment a constant income of $15,000 per year in perpetuity. Assuming a cost of capital of 6%, does the company have to accept this project? (2 points) Step by Step Solution
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