Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

A small business is receiving a five-year $1,000,000 loan at a subsidized rate of 3% per year. The firm will pay 3% annual interest payment each year and the principal at the end of five years. If market interest rate on similar loans is 6% per year, what is the NPV of the loan? (Ignore taxes)

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M924702

Have any Question? 


Related Questions in Basic Finance

At the end of 2011 home depots total capitalization

At the end of 2011 Home Depot's total capitalization amounted to $28,992 million. In 2012 debt investors received interest income of $635 million. Net income to shareholders was $4,526 million. (Assume a tax rate of 35%. ...

Sprint shoes inc had a beginning inventory of 9200 units on

Sprint Shoes Inc. had a beginning inventory of 9,200 units on January 1, 20X1. The costs associated with the inventory were:     Material $ 14.00 per unit Labor 9.00 per unit Overhead 6.10 per unit During 20X1, the firm  ...

What exchange rate system did argentina adopt before 2002

What exchange rate system did Argentina adopt before 2002? Why? What factors contributed to the Argentina currency crisis? Write more information and conclusion about the questions.

Students should choose firstly an industry and secondly two

Students should choose firstly an industry and secondly two (2) ASX listed companies in this same industry upon which to undertake a fundamental analysis. Fundamental Analysis seeks to identify factors that are likely to ...

Assignment 2 assignment 2 is due after you complete lessons

Assignment 2 Assignment 2 is due after you complete Lessons 5 to 8. It is worth 20% of your final grade. Prepare your responses to these assignment problems in a word processing file; put financial data in a spreadsheet ...

The number of claims n in a year has a discrete

The number of claims N in a year has a discrete distribution: Pr[N=k]=0.1(4-k) for k=0,1,2,3. The amount for each claim has mean 300 and variance 30000. The distribution of amount per claim is independent of N. Calculate ...

Effectiveness of monetary policy what circumstances might

Effectiveness of Monetary Policy : What circumstances might cause a stimulative monetary policy to be ineffective?

It is december 2008 and you have just accepted an

It is December 2008, and you have just accepted an appointment as the Chief Financial Officer (CFO) position at Midwest Healthcare System. Dr. Montana is the system's President and Chief Executive Officer (CEO). Your pee ...

Economy a and economy b are similar in every way except

Economy A and Economy B are similar in every way except that in Economy A, 70 percent of aggregate expenditure is sensitive to changes in the real interest rate and in Economy B, only 50 percent of aggregate expenditure ...

What is the primary goal of investor-owned corporations

What is the primary goal of investor-owned corporations? Most Not-for-profit healthcare corporations?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate