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Which formula would you use to solve for the payment needed for a car loan if you know the interest rate, length of the loan, and the borrowed amount? Describe.
To solve for k while the known values are PVA, n, and PMT, begin with the present value of an annuity formula, Equation 8-3b, like this:
Present Value of an Annuity Formula, Table Method
PVA = PMT(PVIFA k, n)
After that, rearrange terms and solve for (PVIFA k, n) like this
PVA / PMT = (PVIFA k, n).
Q. Explain the concept of working capital. Distinguish between variable and permanent working capital. What is the significance of such distinction in financing working capital req
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Explain Capital Budgeting and its methods.
Project Evaluation The expected value calculations are crucial to project investment decisions. The following example explains the use of probabilities in project evaluation.
strengths and weakness
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