Principal plus interest on the unpaid balance

Assignment Help Financial Management

Reference no: EM13875016

Nachos, Inc., expects to invest in a machine that is worth $100,000 today. Assuming the company has to pay off this machine in equal annual instalments (of principal plus interest on the unpaid balance) with the first payment occurring one year from today what would be the payment assuming the interest rate is 10%. Assume that the company has to pay off the loan in 5 years.

$26,378 $30,000 $17,654 $20,968

Reference no: EM13875016

Questions Cloud

What kind of crimes is your group most vulnerable to and why : In other words, what kind of crimes is your group most vulnerable to and why? What policies have been put in place to provide protections and justice

Analyze the following accrual type events : Analyze the following accrual type events, and add them to the work sheet you prepared for P15- 1 Adjust for the expiration of 1 month rent.

Effectively emphasize the potential benefits of the plan? : effectively emphasize the potential benefits of the plan?

Corporate disclosure and fraud : Corporate Disclosure & Fraud - A flurry of corporate scandals (e.g. Enron, Health South, WorldCom, Parmalat, etc) led to the passage of the Sarbanes-Oxley Act (SOX) in 2002

Principal plus interest on the unpaid balance : Nachos, Inc., expects to invest in a machine that is worth $100,000 today. Assuming the company has to pay off this machine in equal annual instalments (of principal plus interest on the unpaid balance) with the first payment occurring one year from ..

Identified and described a new law or regulation : Analyzed and described the news reports, statements in the public record, personal telephone or other interview data collected from the sponsor.

What modification should jackson supply company make : Compensation, Strategy, and Market Value Jackson Supply Company is a publicly owned fir. What modification, if any, should Jackson Supply Company make to its management compensation plan?

About the retirement supplement : My cousin Robert wishes to have $10,000 per year as a retirement supplement for 20 years (from age 65-85). He is now 40 years old. How much must he save each year for the next 25 years if he assumes that his savings will earn 12% annually?

Prepare a draft on law enforcement of mental illness : Prepare a draft on Law Enforcement De-Escalation of Mental Illness

User Account

All Pages