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Please use excel work book to answer it Question 2 Maktan Construct is considering an investment which costs $6,500 and has an estimated cash flows
Please use excel work book to answer it
Question 2 Maktan Construct is considering an investment which costs $6,500 and has an estimated cash flows of $1,500, $1,800, $2,500, $1,920, $2,543 in years 1 to 5, with an IRR of 10%. Management intends to borrow the investment sum from Landi Bank, using the estimated cash flow from the project to finance the loan. a. As a loan officer at Landi Bank, set up a loan table for Maktan with the details above. (use Excel work book) (10 marks). b. After setting up the loan table, you noticed a miscalculation of Maktan's IRR, set up another table to correct the internal rate of return for this investment. (10 Marks). c. If Landi Bank charges 12% interest rate for its loans, construct a loan table detailing an equal value payment plan for Maktan, running for 5 years. (10 Marks). Question 2 Maktan Construct is considering an investment which costs $6,500 and has an estimated cash flows of $1,500, $1,800, $2,500, $1,920, $2,543 in years 1 to 5, with an IRR of 10%. Management intends to borrow the investment sum from Landi Bank, using the estimated cash flow from the project to finance the loan. a. As a loan officer at Landi Bank, set up a loan table for Maktan with the details above. (use Excel work book) (10 marks). b. After setting up the loan table, you noticed a miscalculation of Maktan's IRR, set up another table to correct the internal rate of return for this investment. (10 Marks). c. If Landi Bank charges 12% interest rate for its loans, construct a loan table detailing an equal value payment plan for Maktan, running for 5 years. (10 Marks)Step by Step Solution
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