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Mobile vegan expansion plan loan scenarios conditions

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Reference no: EM132267485

1. You are a part-time manager for The Mobile Vegan, a food truck catering to vegan diners in Portland, Oregon. Jessica Rosen, the owner of the business, wants to expand by adding other food trucks in Portland and the surrounding area. Whether she purchases new trucks or takes over an existing food truck business with an established clientele, she needs a loan to cover the cost of the trucks. She has asked for your help updating the workbook she created to analyze the loan information and forecast sales.

Switch to the Loan Scenarios worksheet, and then calculate the monthly payment for the Add 1 Truck scenario as follows:

a. In cell D11, enter a formula using the PMT function to calculate the monthly payment for a loan.

b. Use the inputs listed under the Add 1 Truck loan scenario in cells D5, D7, and D9. (Hint: The result will be displayed as a negative number to reflect the negative cash flow of a loan payment.)

Cut and paste from excel:

The Mobile Vegan Expansion Plan Loan Scenarios Conditions   Add 1 Truck Add 2 Trucks Add 3 Trucks Take Over Loan amount $56,000 $112,000   $500,000 Annual interest rate 4.50% 0.00% 4.50% 5.00% Monthly interest rate 0.42%   0.44% 0.50% Loan period in years 5 6 7 0.0 Loan period in months 60 72 84   Start date of loan 1/2/2019 1/2/2019 1/2/2019 1/2/2019 Monthly Payment Due   ($1,800) ($2,300) ($5,500)

Reference no: EM132267485

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