What disadvantage of this kind of loan

Assignment Help Financial Management
Reference no: EM131589626

Your business is growing and you need to borrow $120,000 to buy new equipment.

The bank offers you a ten-year fixed principal, fixed interest loan for the amount with a 3% annual rate.

Explain how to calculate the payments for the first three months, and what the disadvantage of this kind of loan is.

Reference no: EM131589626

Questions Cloud

What is the value of equity : Its free cash flow is $30M and is expected to grow at a constant rate of 5% forever. What is the value of equity?
What are their advantages and disadvantages for borrower : What are fixed principle commercial loans? What are their advantages and disadvantages for a borrower?
Is renewal one of the motives for capital expenditure : Is renewal one of the motives for capital expenditure?
According to the buffettology criteria : 10 excellent businesses (consumer monopolies) according to the Buffettology criteria?
What disadvantage of this kind of loan : Explain how to calculate the payments for the first three months, and what the disadvantage of this kind of loan is.
What is the inflation premium : You are considering an investment in 30-year bonds issued by a corporation. What is the inflation premium?
What is total aftertax cash flow to shareholders : What is the total aftertax cash flow to shareholders if the shareholder invests in preferred stock?
Calculate amount of money that i will receive from insurance : sing each of the following depreciation methods, calculate the amount of money that I will receive from the insurance.
What will be total dollar change in inventory between year : what will be the total dollar change in inventory between this year and next year?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd