Question 12 For questions 8-14: XYZ Company is building an addition (building and machinery) to its manufacturing plant to increase its production capacity. The cost of the addition is $1,230,000. Its lender is willing to make a loan to the company at 70% loan to value, for 20 years, payments made monthly, and at an interest rate of 5% APR. 12. What will be the total amount of interest paid on this loan? O $502,732.80 O $550,913.33 O $492,627.87 O $61,500.00 Question 13 For questions 8-14: XYZ Company is building an addition (building and machinery) to its manufacturing plant to increase its production capacity. The cost of the addition is $1,230,000. Its lender is willing to make a loan to the company at 70% loan to value, for 20 years, payments made monthly, and at an interest rate of 5% APR. 13. How much of the first monthly payment will be interest and how much of the last monthly payment will be interest? O $4,722.84 and $152.79 O $2697.25 and $2,697.25 O $3,587.50 and $23.58 O $3,297.86 and $37.11 Question 14 For questions 8-14: XYZ Company is building an addition (building and machinery) to its manufacturing plant to increase its production capacity. The cost of the addition is $1,230,000. Its lender is willing to make a loan to the company at 70% loan to value, for 20 years, payments made monthly, and at an interest rate of 5% APR. 14. If the term of the loan were 30 years instead of 20, what would the monthly payment be and what would be the total amount of interest paid? O $3,734.99 and $783,582 O $1,999.26 and $468,418.74 O $4,622.03 and $802,930.80. O $5,926.67 and $831,463.54
Question 12 For questions 8-14: XYZ Company is building an addition (building and machinery) to its manufacturing plant to increase its production capacity. The cost of the addition is $1,230,000. Its lender is willing to make a loan to the company at 70% loan to value, for 20 years, payments made monthly, and at an interest rate of 5% APR. 12. What will be the total amount of interest paid on this loan? O $502,732.80 O $550,913.33 O $492,627.87 O $61,500.00 Question 13 For questions 8-14: XYZ Company is building an addition (building and machinery) to its manufacturing plant to increase its production capacity. The cost of the addition is $1,230,000. Its lender is willing to make a loan to the company at 70% loan to value, for 20 years, payments made monthly, and at an interest rate of 5% APR. 13. How much of the first monthly payment will be interest and how much of the last monthly payment will be interest? O $4,722.84 and $152.79 O $2697.25 and $2,697.25 O $3,587.50 and $23.58 O $3,297.86 and $37.11 Question 14 For questions 8-14: XYZ Company is building an addition (building and machinery) to its manufacturing plant to increase its production capacity. The cost of the addition is $1,230,000. Its lender is willing to make a loan to the company at 70% loan to value, for 20 years, payments made monthly, and at an interest rate of 5% APR. 14. If the term of the loan were 30 years instead of 20, what would the monthly payment be and what would be the total amount of interest paid? O $3,734.99 and $783,582 O $1,999.26 and $468,418.74 O $4,622.03 and $802,930.80. O $5,926.67 and $831,463.54
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8MC: Grummet Company is acquiring a new wood lathe with a cash purchase price of $80,000. The Wood Master...
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Q-5 (12,13,14)
Transcribed Image Text:Question 12
For questions 8-14: XYZ Company is building an addition (building and machinery) to its
manufacturing plant to increase its production capacity. The cost of the addition is $1,230,000. Its
lender is willing to make a loan to the company at 70% loan to value, for 20 years, payments made
monthly, and at an interest rate of 5% APR.
12. What will be the total amount of interest paid on this loan?
O $502,732.80
O $550,913.33
O $492,627.87
O $61,500.00
Question 13
For questions 8-14: XYZ Company is building an addition (building and machinery) to its
manufacturing plant to increase its production capacity. The cost of the addition is $1,230,000. Its
lender is willing to make a loan to the company at 70% loan to value, for 20 years, payments made
monthly, and at an interest rate of 5% APR.
13. How much of the first monthly payment will be interest and how much of the last monthly
payment will be interest?
O $4,722.84 and $152.79
O $2697.25 and $2,697.25
O $3,587.50 and $23.58
O $3,297.86 and $37.11
Question 14
For questions 8-14: XYZ Company is building an addition (building and machinery) to its
manufacturing plant to increase its production capacity. The cost of the addition is $1,230,000. Its
lender is willing to make a loan to the company at 70% loan to value, for 20 years, payments made
monthly, and at an interest rate of 5% APR.
14. If the term of the loan were 30 years instead of 20, what would the monthly payment be and
what would be the total amount of interest paid?
O $3,734.99 and $783,582
O $1,999.26 and $468,418.74
O $4,622.03 and $802,930.80.
O $5,926.67 and $831,463.54
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