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You are negotiating to make a 10-year loan of $35,000 to ABC Company. According to the agreement ABC Company will pay the loan in the

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You are negotiating to make a 10-year loan of $35,000 to "ABC" Company. According to the agreement "ABC" Company will pay the loan in the following manner: 1. $2,500 at the end of Year1. 2.55,000 at the end of Year 2 3. $7,500 at the end of Year 3, 4. $10,000 at the end of Year 4, and 5. a xed but currently unspecied cash ow at the end of each year from Year 4 through Year 10. "ABC" Company is essentially a low risk company, so you are condent the payments will be made. Accordingly, you regard an 896 as an appropriate rate of return on a low risk but illiquid 10-year loan Based on the above given information, answer ALL the questions that are presented on the following page: What is the total amount that will be paid during the loan's life? What is the value of the payment that occur in year 5? How much should the "ABC Company pay to payoff the entire amount on July 1st, Ye You are negotiating to make a 10-year loan of $35,000 to "ABC" Company. According to the agreement "ABC" Company will pay the loan in the following manner: 1. $2,500 at the end of Year1. 2.55,000 at the end of Year 2 3. $7,500 at the end of Year 3, 4. $10,000 at the end of Year 4, and 5. a xed but currently unspecied cash ow at the end of each year from Year 4 through Year 10. "ABC" Company is essentially a low risk company, so you are condent the payments will be made. Accordingly, you regard an 896 as an appropriate rate of return on a low risk but illiquid 10-year loan Based on the above given information, answer ALL the questions that are presented on the following page: What is the total amount that will be paid during the loan's life? What is the value of the payment that occur in year 5? How much should the "ABC Company pay to payoff the entire amount on July 1st, Ye

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