7. Intel recently purchased a new office building costing $200 million. The firm financed this purchase at 8.25 percent interest with monthly payments of $1,839,789. How many years will it take the firm to pay off this debt? (Show Work)
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7. Intel recently purchased a new office building costing $200 million. The firm financed this purchase at 8.25 percent interest with monthly payments of $1,839,789. How many years will it take the firm to pay off this debt? (Show Work)
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- 4.-DO IT IN EXCEL, AND SHOW THE FORMULASIf the company purchases the machine, its cost of $276,000 will be financed with a loan at 14.8% interest for three years requiring equal annual payments including principal and interest. The machine will be depreciated at 20% per year. The company will pay $8,000 per year for maintenance services. The company plans to keep the machine even after its payback period. What is the total amount paid? A) $236,337.96 B) $304,972.67 C) None of the above D) $361,442.714.-DO IT IN EXCEL, AND SHOW THE FORMULASIf the company purchases the machine, its cost of $276,000 will be financed with a loan at 14.8% interest for three years requiring equal annual payments including principal and interest. The machine will be depreciated at 20% per year. The company will pay $8,000 per year for maintenance services. The company plans to keep the machine even after its payback period. What is the total amount paid? A) $236,337.96 B) $304,972.67 C) None of the above D) $361,442.71 (Choose one option)2.-DO IT IN EXCEL, AND SHOW THE FORMULASIf the company purchases the machine, its cost of $276,000 will be financed with a loan at 14.8% interest for three years requiring equal annual payments including principal and interest. The machine will be depreciated at 20% per year. The company will pay $8,000 per year for maintenance services. The company plans to keep the machine even after its payback period.What is the amount of the annual payment? A) $120,480.90 B) $85,442.71 C) $276,000.00 D) $361,442.71 (Choose one option)
- 2.-DO IT IN EXCEL, AND SHOW THE FORMULASIf the company purchases the machine, its cost of $276,000 will be financed with a loan at 14.8% interest for three years requiring equal annual payments including principal and interest. The machine will be depreciated at 20% per year. The company will pay $8,000 per year for maintenance services. The company plans to keep the machine even after its payback period.What is the amount of the annual payment? A) $120,480.90 B) $85,442.71 C) $276,000.00 D) $361,442.71A manufacturer needs to borrow money to purchase a building. The purchase price of thebuilding is $1.5 million, and the company will put $300,000 in cash down at closing. If thecompany can borrow the difference from its bank at 4.85% for 20 years, what will the monthlyprincipal and interest payment of the loan be? Create an amortization schedule also. Solved in excelXYZ 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. What is the total amount of monthly payments? b. What will be the total amount of interest paid on this loan? c. How much of the first monthly payment will be interest and how much of the last monthly payment will be interest?
- 1.-DO IT IN EXCEL, AND SHOW THE FORMULAS If the company purchases factory equipment, its $719,000 cost will be financed with a five-year 18.4% interest loan that requires equal annual payments including principal and interest. The bank charges a 0.75% commission. The equipment will be depreciated with a useful life of 5 years. The company will pay $12,000 per year for maintenance services. The company plans to keep the machine even after its recovery period.What is the total amount paid to the bank? A) 1'160,034.00 B) None of the above C) 719,000.00 D) $938,672.81 (Choose one option)A property worth $16 million can be refinanced with an 85% loan at 9.5% over 20 years. The balance on the current loan is $12,148,566. Loan payments are $113,302 per month. The loan balance in 10 years will be $8,396,769. If the property is expected to be sold in 10 years, what is the incremental cost of refinancing? a)11.18% b)12.42% c) 10.45% d) 10.94%H5. Smith Development Co. contracted a 30-year FRM loan with monthly amortization of $1.5 million at an interest rate of 13% five years ago. John Smith, a partner, just talked to a loan officer and learned that he can refinance the current balance on the loan at interest rate of 12% for a FRM amortized over 25 years. However, he also estimated the total refinancing cost to be $50,000. If Smith Development Co. holds the mortgage debt for 25 more years, would you recommend them to refinance? What if it holds for three years?
- Novel Industries purchases a 41.2 million cyclo-converter. The cyclo-converter will be depreciated by 10.30 million per year over 4 years, starting this year. Suppose Nokela's tax rate is 40%. a) a. What impact will the cost of the purchase have on earnings for each of the next 4 years? b) What impact will the cost of the purchase have on the firm's cash flow for the next 4 years?18. Acme Bricks, a masonry products company, wants to have $600000 on hand before it invests in new conveyors, trucks, and other equipment. If the company sets aside $80000 per year in an account that increases in value at a rate of 15% per year, how many years will it be before Acme can purchase the equipment? A 4.5 years B 5.6 years C 6.5 years D 5.4 years5.A corporation is considering the purchase of an interest in real estate syndication at a price of $75,000. In return, the syndication promises to pay $1,020 at the end of each month for the next 25 years (300 months). If purchased, what is the expected internal rate of return, compounded monthly? How much total cash would be received on the investment? How much is profit and how much is return of capital?