Assume that Target plans to purchase several large machines to move product at each of its fulfillment
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Assume that Target plans to purchase several large machines to move product at each of its fulfillment centers. The total purchase price of the machinery is approximately $450 million. Target will borrow the entire purchase cost of the machines. It will either take a 10-year loan at 8%, with monthly payments OR a 2-year loan at 10%, also with monthly payments. Show calculations for the present value of each loan structure. Explain your reasoning. in excel
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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