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Right Aid is a company that operates a large chain of retail drug stores. It is highly levered with a number of existing loans. The

Right Aid is a company that operates a large chain of retail drug stores. It is highly levered with a number of existing loans. The new CFO would like to eliminate (pay off) some of those loans but wants to know how much it would cost to pay off the loans early. To do this, she would need to calculate the present value of the loan. On January 1,2024, she identified the following long-term loans that could be paid off in full without additional penalties for early repayment:
Loan B: requires 10 more annual payments of $7 million each. The payments are made at the end of the year (so the next payment is one year from now on December 31,2024). The interest rate is fixed at 4% and is compounded annually.
Loan J: requires one lump sum payment of $20 million three years from now (on December 31,2026). The interest rate is fixed at 3.5% and is compounded annually.
Loan K: requires one lump sum payment of $50 million nine years from now (on December 31,2032. The interest rate is fixed at 6% and is compounded annually.
9. How much would Right Aid have to pay RIGHT NOW (on January 1,2024) in order to satisfy the debt obligations on Loan B (What is the loans present value?):
10. How much would Right Aid have to pay RIGHT NOW (on January 1,2024) in order to satisfy the debt obligations on Loan J (What is the loans present value?):
11. How much would Right Aid have to pay RIGHT NOW (on January 1,2024) in order to satisfy the debt obligations on Loan K (What is the loans present value?):

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