What is the calculation in the cash flow over the life? Universal will borrow $400,000 today to
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Universal will borrow $400,000 today to finance the Rouse Hill store. The ten-year interest-only loan has annual interest repayments of $16,000 (assuming a 4% p.a. rate). Universal's accountant confirms that interest payments are classified as a business expense and are therefore tax deductible. Universal will borrow $400,000 today to finance the Rouse Hill store. The ten-year interest-only loan has annual interest repayments of $16,000 (assuming a 4% p.a. rate). Universal's accountant confirms that interest payments are classified as a business expense and are therefore tax deductible.
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Answer rating: 100% (QA)
To calculate the cash flow over the life of the loan you would need to take into account the following factors 1 Annual interest payments As stated in ... View the full answer
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
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