Today is 1 January 2021. Jake used $200,000 to purchase a cafe business in Sydney. To operate this business, Jake needs to pay rent, maintenance costs and labour costs. Here are the details

Rent will be paid by the end of each month with an amount of $2,000.

Labour cost will be paid by the end of each month with an amount of $10,000.

Maintenance cost will be paid by the end of each quarter with an amount of $500.

Jake predicts that this cafe franchise initially can have monthly revenue of $13,000. Assume that Jake can obtain this amount by the end of each month. Jake forecasts that this revenue amount will increase at the rate of y% p.a. The revenue increase will only happen at the beginning of each year. For example, this cafe franchise initially has monthly revenue of $13,000 in 2021. Then the revenue amount will become $13,000(1+y%) per month in 2022 and $13, 000(1 + y%)2 per month in 2023. Jake assumes the value of y is the same as the Australian CPI rate for 2020. You need to use FactSet to find the Australian CPI rate for 2020.

Jake plans to run this business for three year and predict that he can sell this business on 1 January 2024 with an amount of $210,000.

CALCULATE:

d. Jake is considering to take out a loan of $10,000 to fund this promotion service. The bank has offered three loan options.

Option 1: Jake needs to make daily payment of $67 from 1 January 2021 to 31 May 2021 (inclusive).

Option 2: Jake needs to make monthly payment of $2,028 by end of each month from January 2021 to May 2021 (inclusive)

Option 3: Jake needs to make five payments by end of each month from January 2021 to May 2021 (inclusive). Jake needs to pay $1,910 for January 2021, $1,950 for February 2021 and March 2021, and $2,170 for April 2021 and May 2021. Use Goal Seek to find the implied effective annual rate (i.e., j1) charged by bank for these two three loan options (Assume that there are 365 days in a year.). Which one is better? Use a bar or column chart to compare the loan repayment amount of option 2 and option 3. Plot all payments for option 2 and option 3. Label this sheet as Part d.

Thanks!!