What is the net present value of this finance arrangement

Assignment Help Business Economics

Reference no: EM131076596

Mac arranges financing for a load of contraband weapons he plans to sell to the rebels. The terms of the loan are as follows:

The bank will provide Mac $76,000 today. Each year, for the next 15 years, Mac must pay the bank $12,400. Mac has a real discount rate of 20%.

What is the net present value of this finance arrangement to Mac?

Reference no: EM131076596

Questions Cloud

Circuit outside of europe : At which famous racing circuit outside of Europe have a record seven Formula 1 pilots been killed since 1950?

Describe why this benefit is true : Describe why this benefit is true.

Movement of damped oscillations during earthquakes : 1) Structural engineers may have to study the movement of damped oscillations during earthquakes. One equation that gives the horizontal displacement of an object as a function of time is:

What is the impact on the efficiency of the operations : What is the impact on the efficiency of the operations enqueue and dequeue if we were to maintain the queue's front at the beginning of the list and the queue's back at the list's end?

What is the net present value of this finance arrangement : Mac arranges financing for a load of contraband weapons he plans to sell to the rebels. The terms of the loan are as follows: The bank will provide Mac $76,000 today. Each year, for the next 15 years, Mac must pay the bank $12,400. Mac has a real dis..

Find an anti-derivative of the given functions : Integration Practice. Problem- Find an anti-derivative of the following functions: x ln x and x2 ln x

Determine the half-range cosine series expansion : Sketch the graphs of both f (t) and the periodic function represented by the series expansion for -2 t 2.

Outside diameters lie : The arithmetic mean is 14.0 inches, and the standard deviation is 0.1 inches. About 68% of the outside diameters lie between what two amounts?

Powerful argument for catholic and religious readers : The thesis example: In his editorial, "Amnesty?" in the Jesuit news commentary America, John F. Kavanaugh makes a powerful argument for his Catholic and religious readers; however, his proposal based on ethical reasoning may fail to reach other re..

User Account

All Pages