A building will require capital improvements of $1 million in five years. Assuming monthly cash flow...
A building will require capital improvements of $1 million in five years. Assuming monthly cash flow of $20,000 at the end of every month, how much of the cash flow must the owners set aside each month in a sinking fund assuming deposits will earn a compounded annual return of 6%, compounded monthly?
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Homework Answers
Using excel function as=PMT(rate,nper,pv,fv)
how much of the cash flow must the owners set aside each month
=PMT(6%/12,5*12,0,-1000000)
=14332.80
THE ABOVE WILL be answer..
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A building will require capital improvements of $1 million in
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Excel Hydro took a loan contract which requires a payment of $40 million plus interest two years after the contract's date of issue. The interest rate on the $40 million face value is 9.6% compounded quarterly. Before the maturity date, the original lender sold the contract to a pension fund for $43 million. The sale price was based on a discount rate of 8.5% compounded semi-annually from the date of sale. Excel Hydro is also considering building...
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