I need an explanation for these problems

1 Knowles Music Inc. wants to expand its business and wants to use some debt capital to help finance that expansion. If it borrows $150,000.00 for 5 years, and the lender says the quarterly payments will be $8,855.74, what is the interest rate for this loan? (Compute to 4 decimal places).

Answer:N = 5 x 4 = 20 PV = 150,000PMT = -8,855.74

Compute I = 1.637499 x 4 = 6.549996%. (how to get these number)

2.Howertons Corp. is considering offering a new product which would cost $2.6 million to develop, and the expected annual Free Cash Flows (in thousands of dollars) are: CF1 = $325; CF2 = $487; CF3 = $576; CF4 = $653; and CF5 = $210. If the companys minimum required annual return is 18%, would this be a good investment?

Answer:NPV: $(1,195.6460) means Cost exceeds GPV

IRR: (4.681239) = (4.68%) which is lower than 18%This is not a good investment because NPV is less than $0(When NPV is less than $0, this means the Upfront Cost exceeds the future expected GPV benefit)

3 How much would the upfront cost need to be in order for the Q2 project be a good investment?

Answer:I = 18 CF0 = 0

CF1 thru CF5 are the same

Compute NPV: $1,404.354 (no more than $1.404 mil.)