Terms of loan require you to make monthly payments

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Reference no: EM131930214

1. You are buying a house and have borrowed $343,000 at an annual interest rate of 9.3 percent. The terms of the loan require you to make monthly payments and to completely amortize the loan over thirty years. How much is each monthly payment?

2. Project A would require an initial outlay of $40,000 and is expected to generate positive cash flows in years one through six of $19,179; $13,612; $19,651; $11,611; $12,895; and $10,973. Using a discount rate of 17.1%, what is the NPV of this project? If the answer is negative, include the negative sign, and show the answer to the nearest dollar.

Reference no: EM131930214

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