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Hi Pl upload the answer using Excel. And respond asap A young entrepreneur, ajit is an ambitious intelligent man who dreams to set up a
Hi Pl upload the answer using Excel. And respond asap
A young entrepreneur, ajit is an ambitious intelligent man who dreams to set up a retail mall in an upcoming commercial complex of an urban city. He prepares the project report of his business plan and submits it to the bank for loan procurement. The cost of the project is Rs 100 crores. He has some close friends associated with his business plan. Ajit along with his friends propose to invest Rs 25 crore in the business. The remaining Rs 75 crore needs to be financed. Ajit decides to procure this amount through bank term loan. Ajit explores the opportunities of financing available to him for the project. He has the following options of borrowing: 1. Borrow money from Punjab national bank at an interest rate of 15% p.a. for 15 years. Under this plan he will have to pay an equal annual installment of principal plus interest as repayment of loan. 2. ICICI Bank has also proposed to grant the loan @ 14.5%. for 20 years. Ajit's major equity partner and childhood friend samir gives him a suggestion towards the repayment option. He proposes that ajit should also consider negotiating with the bank PNB, ICICI, to make one single repayment of interest plus principal at the end of 15 years rather than paying annual installments. Answer the following questions: 1. Calculate the annual installment of PNB loan of 15 years ICICI loan of 20 years 2. Calculate the single payment value that can be made to PNB, ICICI at the end of 15 years & 20 years respectively. 3. Which bank &which plan of repayment do you recommendStep by Step Solution
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