DeeringFinancials - Net Returns Additional revenu Year 1...

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Deering Industries Building Loan Expansion Victory Trust Dominion Trust Interest Rate 8.15% 9.50% annual rate Amortization 20 15 years for repayment Loan Amount $775,000 $775,000 principal amount borrowed Monthly Payment ($6,554.95) ($8,092.74) includes principal and interest Total Loan Payments NOTE: Both payments are calculated based on a constant interest rate and a constant payment Monthly Principal Payment (1st payment) payment on principal for the first month of the loan
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Deering Industries Expansion Project Forecasted Cost and Project Returns from Investment Discount rate 4.50% Rate of competing investment (government bond) Cost of expansion (775,000.00) Per annum
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Unformatted text preview: Net Returns Additional revenu Year 1 60,000.00 Year 2 65,000.00 Year 3 74,000.00 Year 4 88,000.00 Year 5 90,000.00 Year 6 102,000.00 Year 7 110,000.00 Year 8 118,000.00 Year 9 125,000.00 Year 10 140,000.00 NPV of Expansion Project Deering Industries Annuity investment Present Value Comparison Annuity investment 1,000.00 Cost to buy annuity Time to maturity 20 Number of years for annuity payments Interest rate 8.0% Interest compounded semiannually; paid semiannually Future Cash flows Annuity payment 40 Rate of 8% times investment divided by two payments Market Interest Rate 6% Present Value Analysis...
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This note was uploaded on 10/17/2011 for the course CIS 106 taught by Professor Alice during the Spring '11 term at Community College of Philadelphia.

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DeeringFinancials - Net Returns Additional revenu Year 1...

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