Raise debt funds from a prospectiveventure investor

Reference no: EM131065144

[Loan Present Values] Jerry's Tree Services is trying to raise debt funds from a prospectiveventure investor, SureWay LLC. SureWay indicated to Jerry Lau that the annualinterest rate on risky venture loans is currently 15 percent. Jerry is seeking athree-year loan with annual payments. He is willing to pay back $100,000 at theend of three years. However, because of cash flow problems, he can afford to payinterest at only a 12 percent annual rate.

Reference no: EM131065144

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