The cost of producing and shipping the set was split among the five opera companies, which each
Question:
"The cost of producing and shipping the set was split among the five opera companies, which each contributed 20 per cent. Each company paid $61,000 in cash to the joint venture and entered into a co-operative loan agreement for an additional aggregative sum of $250,000. The opera companies borrowed $250,000, at 3 per cent per annum interest, from Opera Canada, and each agreed to pay one-fifth of the principal amount of the La Traviata loan and associated interests, or $52,474. As a result, each company was obligated to pay $113,474, including $52,474 in loan payments. None of the parties to the La Traviata loan defaulted on the required payments. The remaining balance of Edmonton Opera’s portion of the loan was due on September 30, 2020."
Required:
How much is the joint venture's total investment to co-produce La Traviata? only consider the principal and exclude any interests.
Note: only enter numbers,No $, no decimal places, no comma. For example, 10000 is an acceptable answer. 10,000, $10,000, 10000.0 are not acceptable.
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe