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Kerry Johnson is applying for a loan so that he can purchase a new machine from overseas for his printing business. Due to the uncertainties
Kerry Johnson is applying for a loan so that he can purchase a new machine from overseas for his printing business. Due to the uncertainties in importing tariff, Kerry estimates that the machine may cost either $ or $ when he places the order. The loan interest rate can also fluctuate between and Kerry plans to pay off the loan in years. Use the accompanying Loans spreadsheet model to answer the following questions.
Click here for the Excel Data File
a Help Kerry plan the best and worstcase scenarios for his loan using Scenario Manager. What are the monthly payment amounts for the best and worstcase scenarios?
Note: Round your answers to decimal places.
tableBestcase monthly payment,Worstcase monthly payment,
b Kerry estimates that his monthly revenue increase due to the new machine will be $ What is the loan amount that Kerry can afford if he wants to break even, assuming a year loan with interest?
Note: Round your answer to decimal places.
Loan amount
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