Dilute hydrogen peroxide (H,0,) is produced in the facility where you work as an engineer. The company aims to invest in an additional concentration unit for the production of concentrated hydrogen peroxide (H,0,) in line with customer demands. For the establishment of the required unit, the finance company recommends the following financing model for 3 years: 100,000 TL will be paid every month in the first year, 150,000 TL will be paid every month in the second year and 175,000 TL will be paid every month in the third year. In addition, an additional balloon payment of 700.000 TL will be made in the 36th month. The monthly interest rate is 2.5%. a) If this proposed financing model was not chosen and all installments were paid equally, what would be the monthly equal installment amount? b) What would be the amount to be paid if no payment was made for this additional concentration facility for 3 years and it was made at the end of the 3rd year? payment Find what is required by drawing cash flow charts

Dilute hydrogen peroxide (H,0,) is produced in the facility where you work as an engineer. The company aims to invest in an additional concentration unit for the production of concentrated hydrogen peroxide (H,0,) in line with customer demands. For the establishment of the required unit, the finance company recommends the following financing model for 3 years: 100,000 TL will be paid every month in the first year, 150,000 TL will be paid every month in the second year and 175,000 TL will be paid every month in the third year. In addition, an additional balloon payment of 700.000 TL will be made in the 36th month. The monthly interest rate is 2.5%. a) If this proposed financing model was not chosen and all installments were paid equally, what would be the monthly equal installment amount? b) What would be the amount to be paid if no payment was made for this additional concentration facility for 3 years and it was made at the end of the 3rd year? payment Find what is required by drawing cash flow charts

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter11: Cash Flow Estimation And Risk Analysis

Section: Chapter Questions

Problem 1cM

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