Calculate the quarterly payment and the monthly payment

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1. Which of the following is true of sunk costs?

a. Similar to variable costs

b. Deciding factor in most project decisions

c. Similar to opportunity costs

d. Not included in initial cash flow

e. Often combined with terminal cash flow

2. An oil producer has borrowed $100,000 at an interest rate of 12% per year for a period of three years. Calculate (a) the quarterly payment, and (b) the monthly payment. If the loan has to be paid back using quarterly payments, show the amortization schedule for the first two years.

Reference no: EM131825799

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