Question: Please show equations in excel thanks Assignment 2 Instructions: Set up an excel spreadsheet to analyze each part of the assignment below. You may base
Please show equations in excel thanks
Assignment 2 Instructions: Set up an excel spreadsheet to analyze each part of the assignment below. You may base your excel spreadsheet on those we have used in class. Turn your results in to the dropbox. This assignment has three parts: | Part 3. Consider the following construction loan. Disbursements under the loan are expected to proceed as follows: months 1-6, $2,000,000 each month. Each disbursement occurs at the end of the month. The budgeted annual interest rate on the loan is expected to remain fixed at 5%. Assume that the loan will be repaid in full at the end of month 6. a. What will be the interest carry for this project? b. What will be the total loan amount that the developer must borrow (including interest carry)? c. Calculate the lender's IRR (effective cost to the borrower) if the loan is made with a 2 percent loan origination fee. Assignment 2 Instructions: Set up an excel spreadsheet to analyze each part of the assignment below. You may base your excel spreadsheet on those we have used in class. Turn your results in to the dropbox. This assignment has three parts: | Part 3. Consider the following construction loan. Disbursements under the loan are expected to proceed as follows: months 1-6, $2,000,000 each month. Each disbursement occurs at the end of the month. The budgeted annual interest rate on the loan is expected to remain fixed at 5%. Assume that the loan will be repaid in full at the end of month 6. a. What will be the interest carry for this project? b. What will be the total loan amount that the developer must borrow (including interest carry)? c. Calculate the lender's IRR (effective cost to the borrower) if the loan is made with a 2 percent loan origination fee
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