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Exercise 9.1: Edward believes that he can get bank financing for 75% of the assets (equipment, buildi ng, and working capital) over a sevenyear period
Exercise 9.1: Edward believes that he can get bank financing for 75% of the assets (equipment, buildi ng, and working capital) over a sevenyear period at an APR of 7% compounded month Ly. He plans to put in the rest ofthe money with a loan from his family, which he will pay back in 10 equal yearly installments with no interest. Edward estimates the business can be sold for $900,000 at end of Year 10. a. What will be the IRR for the project? b. What will be the NPV for his investment if MARR was 11%? c. What will be the EUAB that the business will be able to generate over the 10year period
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