Question: need it by hand not on excel A) An engineer takes a loan form a lending company equals to $10,000. The lending company takes X
need it by hand not on excel
A) An engineer takes a loan form a lending company equals to $10,000. The lending company takes X % annual interest rate compounded quarterly. The engineer agrees to pay off the loan in 10 equal payments at $1200/year. 1) Determine the annual effective interest rate (2 points) 2) Determine the annual nominal interest rate. (1 points) 0 B) For the cash flow below, Year Revenues S Cost S 1 25000 30000 2 15000 7000 3 4000 6000 4 18000 14000 6000 3) Are there multiple rates of retum values for this cash flow (apply the two rules)? (2 points) 1. Find the extemal rate of retum using the modified rate of retum approach (MIRR), an investment rate of 12% per year, and a borrowing rate of 8%. Assuming that the MARR =10%. (4 points) 2. Is this project justified or not and why? (1 point)
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