A startup company has developed a new mobile app tha thas the potential to disrupt the market. The company is seeking funding to launch and market the app. The company is considering two financing options: equity financy wiht a venture capital firm that offers a valuaiton of $10m an debt financing with a bank at an interest rate of 10% over a five year term. What is the total interest expense for the bank loan over the five year term if the copany borrows $2m $100,000 $200,000 $300,000 $400,000
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A startup company has developed a new mobile app tha thas the potential to disrupt the market. The company is seeking funding to launch and market the app. The company is considering two financing options: equity financy wiht a venture capital firm that offers a valuaiton of $10m an debt financing with a bank at an interest rate of 10% over a five year term. What is the total interest expense for the bank loan over the five year term if the copany borrows $2m
$100,000
$200,000
$300,000
$400,000
Please provide detail regaridng answer. I believe it is $200,000 but answer key shows $300,000 and I am not seeing how possible
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- Please teach me how to solve this, thanks! ABC would like to hire two loan collectors to speed up its collection process. Each of the loan collectors will be given total annual benefits of P150,000 per year. The entity earns P30,000,000 in sales, 10% of which are cash. The entity has a 365-day year and a minimum required rate of return of 10%. The current average age of receivables is 70 days but with the loan collectors, it is forecasted to decrease by 30 days. How much is the net benefit or (cost) of this option?Levi is thinking of purchasing some new equipment. He is thinking of investing the sum ofhis earnings which is $4835. He has checked with three banks and their interest rates andrepayment periods in years are: Bank A: 7.25% over 3 years; Bank B: 6.75% over 4 yearsand Bank C: 5.75% over 5 years. Using the excel, in a new sheet calculate Levi’s monthly payments for each, and advise Levi on the best option. show formulas used to make calculationOne year ago, JK Mfg. deposited $12,000 in an investment account for the purpose of buying new equipment four years from today. Today, it is adding another $15,000 to this account. The company plans on making a final deposit of $10,000 to the account one year from today. How much will be available when it is ready to buy the equipment, assuming the account pays 5.5 interest? solve using financial calculator please