Based on the information provided below, compute the Net Present Value of the project (CO 3). A Net Present Value Template is Attached. (Hint: Don't forget to update the discount rate to the amount required for this project and add your cash flow numbers.) Royal Dutch Shipping is planning on Investing $1,600,000 to buy a freighter. Prepare a net present value analysis based on the assumption that the freighter will be sold for 10% of its cost at the end of the year 5. Assume a 10% cost of capital. Annual operating cash flows for the project are: Year 1: $380,000 Year 2: $390,000 Year 3: $400,000 Year 4: $410,000 Year 5: $420,000

Prepare a loan amortization schedule based onmonthlypayments for the $1,600,000 if Royal Dutch Shipping can pay 10% down on a loan for $1,600,000 and can get a loan for 6% interest for 10 years (do not include this in your Net Present Value computations. This is a separate issue. (CO 3). (Hint:www.bankrate.com/calculators/mortgages/amortization-calculator.aspx)

Instructions:Prepare the homework in Excel template provided. Save your assignment file as 'LastnameFirstinitial-FINC300-3", and submit by 11:55 pm ET, Day 7 (Sunday).

Your assignment will be graded according to the following Grading Rubric:

Grade	Homework Problems Grading Criteria
90-100%	Assigned exercises/problems are completed in full. Work demonstrates effective application of the concepts/principles covered in the chapter. Work thoroughly explains answers and calculations. Solutions are calculated with no errors or insignificant errors.
80-89%	Assigned exercises/problems are completed in full or are significantly complete. Work demonstrates effective application of most concepts/principles covered in the chapter. Work thoroughly explains most answers and calculations. Solutions are calculated with insignificant errors.
70-79%	Assigned exercises/problems are mostly complete. Work demonstrates effective application of some concepts/principles covered in the chapter. Work explains some answers and calculations. Solutions are calculated with significant errors.
60-69%	Assigned exercises/problems are fairly complete. Work demonstrates effective application of a few concepts/principles covered in the chapter. Work explains a few answers and calculations. Solutions are calculated with significant errors.
0-59%	Assigned exercises/problems are less than 50% complete. Work does not demonstrate effective application of the concepts covered in the chapter. Work submitted does not thoroughly explain answers and calculations. Solutions are not calculated or are calculated with significant errors.