QUESTION 13 Your venture has signed a new consulting contract that will require you to invest in new analytical software and a new computer. The cost of this equipment is $200,000. You will finance this investment by borrowing from the bank. The loan will be for 6 years at a rate of 7%. The loan will be amortized over the three years so that at the end of year 3 your loan balance will be $0. The principal payment at the end of year 3 is $32,010.44 plus or minus $5. True False

QUESTION 13 Your venture has signed a new consulting contract that will require you to invest in new analytical software and a new computer. The cost of this equipment is $200,000. You will finance this investment by borrowing from the bank. The loan will be for 6 years at a rate of 7%. The loan will be amortized over the three years so that at the end of year 3 your loan balance will be $0. The principal payment at the end of year 3 is $32,010.44 plus or minus $5. True False

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter7: Types And Costs Of Financial Capital

Section: Chapter Questions

Problem 8EP

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