1 btu inc would like to buy the house and take the mortgage, Ask an Expert

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1. BTU Inc. would like to buy the house and take the mortgage described in Problem 4-36. The firm can afford to pay only $23,500 per year. The bank agrees to allow the firm to pay this amount each year, yet still borrow the same amount as in 4-36. At the end of the mortgage (in 30 years), the firm must make a balloon payment; that is, it must repay the remaining balance on the mortgage. How much will this balloon payment be?

2. You have an investment opportunity that requires an initial investment of $5000 today and will pay $6000 in one year. What is the IRR of this opportunity?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92678750

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