Identify a loan product or products to meet financial needs

Assignment Help Financial Management

Reference no: EM132068377

Read each customer scenario and identify a loan product or products to meet the customer's financial needs, and briefly explain your reasoning.

Situation 1

Nancy is the owner and CEO of a manufacturing plant. The company needs new equipment because it is expanding. The average useful life of the equipment would be four years.

Suggested loan product, and why.

Situation 2

Richard and Mary, a retired couple, recently purchased a lot where they plan to build their dream home. They have started talking with an architect about the design and would like to begin building the home within six months. They will need money to pay the architect and contractor. They would like to pay back the money borrowed over 15 years.

Suggested loan product, and why.

Reference no: EM132068377

Questions Cloud

What was the real cost of hedging the payables : What was the real cost of hedging the payables for this U.S. firm if the spot rate of the British pound was $1.34?

Business strategy improve competitive advantage : Can including environmental sustainability in business strategy improve competitive advantage?

Legal dispute between the government of tanzania : Briefly outline both the valid and questionable positions of each party, and suggest ways that each party might find common ground in a mutually acceptable

What is the projects average accounting return : The plant has an installation cost of $17.8 million, which will be depreciated straight-line to zero over its four-year life.

Identify a loan product or products to meet financial needs : The company needs new equipment because it is expanding. The average useful life of the equipment would be four years.

What is the payback period : The sign will cost $4, 700 and will be posted for one year. You expect that it will generate additional revenue of $564 a month. What is the payback period?

What are the effects on the net present value : What are the effects on the net present value in the developing country relative to the more developed country?

Determine the firms desired grace period to extend : After reading chapter two- how will a financial manager determine the firm's desired "grace period" to extend its customers payment on their accounts?

Determine how process improvements reduce unit costs : Determine how process improvements reduce unit costs over time. Be sure to copy tables and charts into your Word document to support your analysis.

User Account

All Pages