Please answer alternative 1 only. Thank you.
In Million
Fund required | 100 |
Loan Processing Charge | 6% |
Net Loan amount | 106.383 |
The Loan would be fully amortized with equal annual debt service in 4 Years i.e. Annual Principal Payment = 106.383/4 = 26.596 million
Rate 10% , Present value of Cost of Project
Year | Annual Payment of Principal | Interest Amount | Net Cash Flow | PV@ 10% | Present Value |
1 | -26.596 | -8.511 | -35.106 | 0.909 | -31.915 |
2 | -26.596 | -6.383 | -32.979 | 0.826 | -27.255 |
3 | -26.596 | -4.255 | -30.851 | 0.751 | -23.179 |
4 | -26.596 | -2.128 | -28.723 | 0.683 | -19.618 |
Present Value of Cost of Project | -101.967 |
Interest Expense Schedule
Year | Opening Principal | Interest @ 8% | Principal Repayment | Closing Principal |
1 | 106.383 | 8.511 | -26.596 | 79.787 |
2 | 79.787 | 6.383 | -26.596 | 53.191 |
3 | 53.191 | 4.255 | -26.596 | 26.596 |
4 | 26.596 | 2.128 | -26.596 | 0.000 |
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