Answer:
$25,080
Explanation:
Given:
Loan amount = $1,44,000
Starting Date 1 march 2021
Duration = 11 month
Interest Rate = 19%
Amount of interest =?
Amount of interest for eleven month = Amount of interest *11/12
Amount of interest = $27,360*11/12
Amount of interest = $25,080
Answer:
The projects net present value = −$1,104,607
Explanation:
The net present value is the sum of the present values of all expected cash-flows from t=0 to t=n
The equal cash-flows of $500,000 expected at the end of each year from year 1 to year 5 are an annuity whose present value is calculated as follows:
PV of An Ordinary Annuity=
where PMT is the the equal payment cash inflow received at the end of each period
i is the project's cost of capital and
n is the number of periods making the annuity
Therefore: Net Present value of this investment given a 10% project cost of capital is calculated as follows:
NPV==-$1,104,606