Please answer fast without plagiarism please Required informationIn order to build a new warehouse facility, the regional distributor for Valco Multiposition Valves borrowed $2 million at11% per year interest.If the company repaid the loan in a lump sum amount after 2 years, what was the amount of the payment? (You must provide ananswer before moving to the next part.)The amount of the payment was $2,464,200If the company repaid the loan in a lump sum amount after 2 years, what was the amount of interest?The amount of interest was $

Interest: It refers to the fees that are borne by the borrower as a result of borrowing any asset…

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EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

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Required information. In order to build a new warehouse facility, the regional distributor for Amazon borrowed $2 million at 13% per year interest. If the company repaid the loan in a lump sum amount after 2 years, what was the amount of the payment? (You must provide an answer before moving to the next part.) The amount of the payment was $ 6,590,796.72
In order to build a new warehouse facility, the regional distributor for Valco Multi-position Valves borrowed $1.6 million at 10% per year interest. If the company repaid the loan in a lump sum amount after two years, what was (a) the amount of the payment, and (b) the amount of interest?
A solid waste disposal company borrowed money at 10% per year interest to purchase new haulers and other equipment needed at the company-owned landfill site. If the company got the loan 2 years ago and paid it off with a single payment of $4,600,000, what was the principal amount P of the loan? O a. $3806153 O b. $3810653 O. $3816035 O d. $3801653
Grummet Company is acquiring a new wood lathe with a cash purchase price of $80,000. The Wood Master Industries (the manufacturer) has agreed to accept $23,500 at the end of each of the next 4 years. Based on this deal, how much interest will Grummet pay over the life of the loan?A. $94,000B. $80,000C. $23,500D. $14,000
Emerson Processing borrowed $900,000 for in- stalling energy-efficient lighting and safety equipment in its La Grange manufacturing facility. The terms of the loan were such that the company could pay interest only at the end of each year for up to 5 years, after which the company would have to pay the entire amount due. If the interest rate on the loan was 12% per year and the company paid only the interest for 4 years, determine the following: (a) The amount of each of the four interest payments (b) The amount of the final payment at the end of year 5
LEW Company purchased a machine at a price of $100,000 by signing a note payable, which requires a single payment of $123,210 in two years. a. Assuming annual compounding of interest, what rate of interest is being paid on the loan? Use Excel function Rate to calculate the rate. b. What would be the purchase price of the machine had LEW negotiated a single payment of $120,000 in two years, using the same effective rate? Use excel only..
An industrial plant manager decided to purchase a new generator through financing at a cost of $1,800,000.00. 15% compounded semi-annually. The manager agreed to amortize the loan for 10 years. You are requested to prepare an amortization table.
Spectra Scientific of Santa Clara, CA, manufactures Q-switched solid state industrial lasers for LED substrate scribing and silicon wafer dicing. The company got a $60 million loan, amortized over a 5-year period at 8% per year interest. What is the amount of the unrecovered balance(a) immediately before the payment is made at the end of year 1, and (b) immediately after the first payment?
Grouper Excavating Inc. is purchasing a bulldozer. The equipment has a price of $90,500. The manufacturer has offered a payment plan that would allow Grouper to make 10 equal annual payments of $15,367.03, with the first payment due one year after the purchase. 1- How much total interest will Grouper pay on this payment plan? Total interest = 63,170 2- Grouper could borrow $90,500 from its bank to finance the purchase at an annual rate of 9%.Should Grouper borrow from the bank or use the manufacturer’s payment plan to pay for the equipment? Manufacturer's rate %?
A small analytical laboratory borrowed $26,000 (the original amount or the principal) at an interest rate of 8% per year to purchase a used Agilent gas chromatograph. If the lab repays the loan plus interest in 1 year, how much must it pay at the end of the year? The nominal annual rate is: $28,080 $2,080 $26,000 $52,000
With a $100,000 investment in a new injection mouldingmachine, A-Design Inc., a company specialized in thedesign and manufacturing of armrests for wheelchairswas able to achieve an operating income of $36,000 inits first year of production/operation. The interestexpenses on the money A-Design has borrowed were$5,000 per year. 3. What is the simple payback period (in years) for theinjection moulding machine investment?
XYZ Company is building an addition (building and machinery) to its manufacturing plant to increase its production capacity. The cost of the addition is $1,230,000. Its lender is willing to make a loan to the company at 70% loan to value, for 20 years, payments made monthly, and at an interest rate of 5% APR. a. How much of the total cost is CAPEX and how much of the total cost is OPEX? b. How much cash must the company have to make the down payment? c. What is the monthly payment?

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