Module 4 Executive Summary (115 Points) (first assignment)
Messineo LLC borrowed $15,000 at a 14% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal annual end of year payments. As the CFO of Messineo, LLC you must prepare a report of the pertinent information in a short summary for the CEO.
Also, be sure to remind her that the interest portion of the loan payment is tax deductible. You should include your spreadsheet as an appendix to your executive summary to prove your figures in the loan payment schedule.
Hint: Using a spreadsheet, you will start with the PMT function to calculate the annual payment. Next you will use the IPMT function to find the interest portion for each of the three years.
Module6 Galaxy Satellite Co. (120 Points) (second assignment)
Galaxy Satellite Co. is attempting to select the best group of independent projects competing for the firm’s fixed capital budget of $10,000,000. Any unused portion of this budget will earn less than its 20 percent cost of capital. A summary of key data about the proposed projects follows.
Project |
PV of Inflows |
Initial Investment |
IRR |
|
A |
$3,050,000 |
$3,000,000 |
21% |
|
B |
$9,320,000 |
$9,000,000 |
25% |
|
C |
$1,060,000 |
$1,000,000 |
24% |
|
D |
$7,350,000 |
$7,000,000 |
23% |
**If you are using any sources make sure to cite them within the text and include a reference page**
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