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NEWS has decided to purchase a new parcel of land in order to expand operations into a brand-new facility and retake the competitive advantage. The

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NEWS has decided to purchase a new parcel of land in order to expand operations into a brand-new facility and retake the competitive advantage. The Amortization Schedule below has been generated for your use in this assignment and in future professional/personal endeavors. NOTE: Enter the information presented in Tasks 1 and 2. No calculations are needed to generate values in the tables below. Task 1: Parcel GREEN Step 1: Enter the following information into the highlighted cells associated with the green parcel section below: Cost = $10,000,000 Annual Interest Rate = 11% (NOTE: enter this as a whole number and not a decimal) Loan Term = 25 Years Task 2: Parcel BLUE Step 1: Enter the following information into the highlighted cells associated with the blue parcel section below: Cost = $ 7,500,000 Annual Interest Rate = 20% (NOTE: enter this as a whole number and not a decimal) Loan Term = 15 Years 8 Question 1: NEWS would like to compare two different parcels, each of which is tied to a specific lender and the lender's terms. Provide your recommendation on which option is the best and support your recommendation. Answer: 2 5 Question 2: Explain how your answer might change if NEWS was concerned with short-term profit margins. Explain how would your answer might change if NEWS is concerned with long-term debt, due to a poor book value rating from the most recent stock analysis? 7 Answer 3 9 Parcel GREEN Parcel BLUE Amount Borrowed Tresent Amount Borrowed Truser 3 4 5 $ $ 12 12 an 0 0 Years Payments per Year 7 Total Periods Annual Interest Rate Compound Rate Payment Amount Years Payments per Year Total Periods Annual Interest Rate Compound Rate Payment Amount 0.00% 0.00% 3 #NUM! #NUM! 3 Payment Number Payment Interest Principal Balance Payment Number Payment Interest Principal Balance 2 #NIMI #NIMI #NIMI #NIMI +NI IMI #NIMI

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