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Santini Construction is evaluating a project to build a bridge over the Salmon River. The project is currently worth $13,600,000. In one year, when the
Santini Construction is evaluating a project to build a bridge over the Salmon River. The project is currently worth $13,600,000. In one year, when the construction is 33% complete, there will be a one-time payment of $3,200,000. Over the next two years, quarterly payments, at the end of every quarter, of $1,510,000 will be made. The job is scheduled to be completed within the three years. During the first year, money is worth 6.59%, compounded annually. Do not include the dollar sign, $, in your answers. Do not include the comma usually used to denote thousands. Do not include the percent sign, %, in your answers. (a.) What is the amount of the debt after the deferral period? 3410880 X (b.) What is the debt after the one-time payment? 10400000 X (c.) What is the annually compounded interest rate for the annuity period? 1 * Correct to exactly 4 decimal places. Hint: You do not have a formula for this calculation - However the BAII Plus makes it easy! (d.) What is the effective annual rate of interest? 1 * Correct to exactly 4 decimal places
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