Exercise 2: (20 points)

You are the financial manager of the firm INFRA.Ine that invests in infrastructure construction and management, your company needs an estimate of a financing plan for a construction project.

According to the evaluation of the experts, the project will be spread over a period of 4 years. The annual funding requirement to carry out this project is $1,000,000 at the beginning of each year. The firm has set a period of 6 years to raise the necessary funds to finance this project, the nominal interest rate is 8% capitalized semi-annually.

1. How much does the company have to save at the end of each month to be able to finance this project in 6 years?

If the firm wants to start financing the project today t-0, by contracting a bank loan equal to the VA of all the financing needs of the project (for the 4 years).

2. Calculate the amount of the monthly payments that the firm must pay to reimburse this

Bank loan for a period of 15 years?