Question: How can I include loan amortisation in discounted cash flow analysis (Capital Budget) for the new product project that would reach the end of its

How can I include loan amortisation in discounted cash flow analysis (Capital Budget) for the new product project that would reach the end of its life in six years time?

Loan is fully amortised for $500,000 at a fixed rate of 7.5%p.a that would be available if the project went ahead. The monthly repayments on the loan would be $7,669 over 7 Years.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!