THIS IS WHAT MY TEXTBOOK STATES REGARDING THE PLANS (sorry I couldn't find anything more):

PLEASE BE CLEAR IN EXCEL ANSWERS! (FORMULAS/EQUATIONS/CALCULATIONS) THANK YOU!

09.03-PR007 A company purchases a machine for $800,000. The equipment qualifies as 5-year property for MACRS-GDS depreciation. The machine is paid for by borrowing $500,000, to be repaid over a 5-year period at an annual compound interest rate of 12%. Before-tax cash flows are as shown on the next page, including a $200,000 salvage value after 5 years. The income-tax rate is 25%. An MARRAT of 10% applies. EOY BTCF 0-$800,000 1 100,000 2 200,000 3 300,000 4 400,000 5 700,000 Determine the PW of the ATCFs using: a. Loan payment Plan 2. b. Loan payment Plan 4. c. State which of the two loan payment plans is preferred, and explain why it is preferred in terms of the relationship between the loan rate and the MARRAT- Now, let's examine four payment plans as they are used to secure $300,000 financing for the $500,000 SMP machine acquisition considered in earlier examples. The plans are: (a) Plan 1 pay the accumulated interest at the end of each interest period and pay the principal at the end of the loan period; (b) Plan 2make equal principal payments, plus interest on the unpaid balance at the end of the period; (c) Plan 3make equal end-of-period payments; and (d) Plan 4make a single payment of principal and interest at the end of the loan period. The loan interest rate = 12%