How much of her first payment will be applied to interest

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1. Estimating Capital Budgeting Cash Flows (Ch 13):

What are Mutually exclusive versus independent projects?

What are Principles (e.g. ignore sunk costs)?

What are Equations (e.g. new products)?

2. How much money will you have in 20 years if you save $600 per year? Assume you make 20 annual payments at the end of each year and that you can earn 10.0 percent annual interest.  

3. If the company borrows $50,000 from a bank at effective annual return of 10% interest over the eight- year life of the loan with monthly instalments. How much of her first payment will be applied to interest? To principal? How much of her second payment will be applied to each?

Reference no: EM132061449

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