posted by .

An interest rate( is it variable-relevant or fixed irrelevant for year 1,2,3,4?) of 11.5%, from a 4 years loan to buy a machine( will last 5 years) on the last day of the company'previous financial year , should it be allocated in a Project Financial Data for evaluate if the company should invest or not in the project. (Investment appraisal, cost of capital and risk). Thanks.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. calculating annuity

    IF a company will generate 80,000 in annual revenue each year for the next eight years and the interest rate is 8.2% what is the present value of the savings?
  2. Financial Management

    Proctor Micro-Computers, Inc. requires $1,200,000 in financing over the next two years. The firm can borrow the funds for two years at 9.5 percent interest per year. Mr. Procter decides to do economic forecasting and determines that …
  3. Business Finance

    Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $2,190,000 and will last for 7 years. Variable costs are 38 percent of sales, and fixed costs are $122,000 per year. Machine …
  4. operations management

    Best Wheels Bicycle Company is looking to automate production of a framing component and will need to purchase new frame fabrication machinery. The company has narrowed the selection to 2 machines that have a useful life of 3 years. …
  5. financial management

    Suppose you invest $2,500 in an account bearing interest at the rate of 14% per year. What will the future value of your investment in six years?
  6. Financial Management

    Your company will generate $68,000 in an- nual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 8.5 percent, what is the present value of the savings?
  7. Finance

    Company is planning to buy a machinery at a cost of $20 million. This machine will be used for 10 years. The machine will bring additional revenue as follows: $10 million for first 6 years and $7 million for the last 4 years Expenses …

    hello,,, We offer a variety of loans to individuals (personal loan) and cooperate bodies at an interest rate of 3% per annul.This is to help you meet your financial obligations, especially with the ongoing global financial crisis. …
  9. Financial maths year 9

    Sophie borrowed $2000 at a simple interest rate of 15% for 3 years to repay the loan and has $900 in interest. If Sophie's interest was calculated at the same rate on the balance owing, how much would she have owed after 6 months if …
  10. financial management

    a) An investment gives you $10,000 from years 1 through 4 and 40,000 in year 5. If the interest rate is 7.5%, what is the present worth of this investment?

More Similar Questions