Learning Objectives

1. Calculate debt payment in Excel
2. Create amortization schedule in Excel
3. Analyze date and make business decision
4. Prepare a professional memory

Project Scenario

Ryan Enterprises has a business plan for a QR Shopper, a start-up business. He is considering two financing alternatives for a business loan. Ryan is concerned about several issues that may influence the decision. One such issue is the comparative impact of the two alternatives on financial statements. Below are the two financing alternatives that Ryan Enterprises is considering:

Alternative A: A seven-year business loan in the amount of $450,000 with a 5% interest rate.

The terms of the loan require payments of principal and interest every six months

at the end of each period (six-months).

Alternative B: A five-year business loan in the amount of $450,000 with a 4.25% interest rate.

The terms of the loan require payments of principal and interest every quarter

at the beginning of each period (quarter).