Thank you for your help

a. Calculate the monthly repayment on the following housing loan:

Loan $600000

Years 19

Rate 6% or .06 pa compounded monthly

Answer to the nearest dollar.

b. Project A has an NPV of 100000. The project is financed by borrowing at 7%pa. The cost of capital for Project A is 0.11. This rate is expressed as a decimal, e.g. so that .12 is equal to 12%. The project has 4 year life. Calculate the Annual Equivalent (AE). Your textbook calls this EAV, Equivalent Annual Value. Calculate to the nearest dollar.

c. Calculate the NPV of a project that has an outlay of $300,000 and has annual net cash flows of $60000 per year over 9 years. The project has a salvage value (disposal value) of 10% of its original value. The required rate of return for projects of similar risk is 0.1.

Note that the rate of return is quoted as a decimal, e.g. 12% p.a. is written as .12 in the question above. Your answer must be accurate to the nearest dollar. Do not enter the $ sign when entering your answer. If your NPV is negative enter a minus sign before typing your answer, e.g. -2345.