1 2 3 4 5 An investment opportunity promises to provide a cash flow of $1,400...

 

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1 2 3 4 5 An investment opportunity promises to provide a cash flow of $1,400 a month for the next 4 years. The cost of the investment is $50,000. Use an annual interest rate of 5% and explain whether this is a good investment. 10. You want to purchase a car costing $30,000, and you finance it through a 5-year loan at a 4% annual interest rate. Prepare an amortization schedule for the first 6 months of your car payments. Payment Interest Principal Principal Balance 1 2 3 4 5 An investment opportunity promises to provide a cash flow of $1,400 a month for the next 4 years. The cost of the investment is $50,000. Use an annual interest rate of 5% and explain whether this is a good investment. 10. You want to purchase a car costing $30,000, and you finance it through a 5-year loan at a 4% annual interest rate. Prepare an amortization schedule for the first 6 months of your car payments. Payment Interest Principal Principal Balance

Answer rating: 100% (QA)

Investment Opportunity Analysis To determine whether the investment opportunity is good we need to evaluate the present value of the cash flows and compare it to the initial cost of the investment Giv... View the full answer