Please solve only part C in 30 minute Question 4a. You have just started a new company to deliver mail and parcels to rural communities. Atthe moment, other companies either do not provide a service or are exceptionally expensive.The new company requires initial investment to purchase a fleet of 20 medium-size vans.These cost £20,000 each and each one requires a down payment of 20 per cent. Yourbusiness plan anticipates the vans being fully paid off after 6 years and you wish to makemonthly payments on the vans starting a month from now. The APR of the loan is 9.6 percent. What are the monthly payments?b. After 4 years, you are approached by another firm who wishes to buy the postal company.You wish to pay off the van loan completely and approach your bank for details. They haveindicated that any early completion of your loan will incur a 1 per cent penalty. You havejust paid an instalment and have 24 payments left (next payment in a month). How muchwill you need to pay the bank today to cancel the loan?с.Explain how you would modify the present value of an annuity shortcut formula toaccommodate an equal payment stream that begins immediately. How would you modifythe present value of an annuity shortcut formula to accommodate an annuity that begins inyear 5? How would you answer this question if the payment stream was a growingperpetuity?

You have explicitly asked for help in part (C). Hence, I am moving on to part (C). We know the…

Explain how you would modify the present value of an annuity shortcut formula to accommodate an equal payment stream that begins immediately. How would you modify the present value of an annuity shortcut formula to accommodate an annuity that begins in year 5? How would you answer this question if the payment stream was a growing perpetuity?

Explain how you would modify the present value of an annuity shortcut formula to accommodate an equal payment stream that begins immediately. How would you modify the present value of an annuity shortcut formula to accommodate an annuity that begins in year 5? How would you answer this question if the payment stream was a growing perpetuity?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8EB: Shonda & Shonda is a company that does land surveys and engineering consulting. They have an...

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