1-Petrus has an opportunity to make two investments, but he can only afford to make one of...
Question:
1-Petrus has an opportunity to make two investments, but he can only afford to make one of them. Each one costs $ 25,000,000. The first investment can be sold in 14 years for $ 98,500,000 and has no periodic cash flow. The second investment has a $ 200,000 per month cash flow for 6 years followed by a cash flow of $ 400,000 per month for 8 years. The second investment has no resale value. Which investment is better, from the standpoint of IRR?
2- A monthly amortizing, 30-year fixed-rate hotel mortgage for $100 mi was issued 10 years ago at 2%. Market rates for such mortgages today has increased to 5%. How much will you pay to buy this mortgage today?
3- Mr. X bought a house for $293,000. He put 20% down and obtained a fully amortized monthly loan for the balance at 5.75% interest for 30 years.
a. Find the amount of X's monthly payment.
b. Find the total interest paid by X.
c. do an amortization table for this loan.
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe