Task 2: Parcel BLUE Step 1: Enter the following information into the highlighted cells associated with the blue parcel section below: Cost = $7,500,000 Annual Interest Rate = 20% (NOTE: enter this as a whole number and not a decimal) t%3D Loan Term = 15 Years Question 1: NEWS Would like to compare two different parcels, each of which is tied to a specific lender and the lender's terms. Provide your recommendation on which option is the best and support your recommendation. Answer: 2. 3 24 25 Question 2: Explain how your answer might change if NEWS was concerned with short-term profit margins. Explain how would your answer might change if 26 NEWS is concerned with long-term debt, due to a poor book value rating from the most recent stock analysis? 27 Answer: 28

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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I need help with questions 1 and 2 please
11
12 Task 2: Parcel BLUE
13 Step 1: Enter the following information into the highlighted cells associated with the blue parcel section below:
14 Cost = $7,500,000
15 Annual Interest Rate = 20% (NOTE: enter this as a whole number and not a decimal)
16 Loan Term = 15 Years
%3D
17
18 Question 1: NEWS would like to compare two different parcels, each of which is tied to a specific lender and the lender's terms. Provide your recommendation
19 on which option is the best and support your recommendation.
20 Answer.
21
22
23
24
25 Question 2: Explain how your answer might change if NEWS was concerned with short-term profit margins. Explain how would your answer might change if
26 NEWS is concerned with long-term debt, due to a poor book value rating from the most recent stock analysis?
27
Answer:
28
29
30
31
32
Parcel GREEN
Parcel BLUE
Amount
Amount
33
Borrowed
$ 10,000,000.00
Borrowed
$7,500,000.00
Present
Present
34
Value
2$
Value
2$
35
Years
25
Years
15
Payments
Payments
12
12
per Year
Total
per Year
Total
36
300
180
37
Periods
Periods
Annual
Annual
11.00%
20.00%
38 Interest Rate
Interest Rate
Compound
Compound
0.92%
1.67%
39
Rate
Rate
Payment
Payment
$98,011.31
$131,722.24
40
Amount
Amount
41
Transcribed Image Text:11 12 Task 2: Parcel BLUE 13 Step 1: Enter the following information into the highlighted cells associated with the blue parcel section below: 14 Cost = $7,500,000 15 Annual Interest Rate = 20% (NOTE: enter this as a whole number and not a decimal) 16 Loan Term = 15 Years %3D 17 18 Question 1: NEWS would like to compare two different parcels, each of which is tied to a specific lender and the lender's terms. Provide your recommendation 19 on which option is the best and support your recommendation. 20 Answer. 21 22 23 24 25 Question 2: Explain how your answer might change if NEWS was concerned with short-term profit margins. Explain how would your answer might change if 26 NEWS is concerned with long-term debt, due to a poor book value rating from the most recent stock analysis? 27 Answer: 28 29 30 31 32 Parcel GREEN Parcel BLUE Amount Amount 33 Borrowed $ 10,000,000.00 Borrowed $7,500,000.00 Present Present 34 Value 2$ Value 2$ 35 Years 25 Years 15 Payments Payments 12 12 per Year Total per Year Total 36 300 180 37 Periods Periods Annual Annual 11.00% 20.00% 38 Interest Rate Interest Rate Compound Compound 0.92% 1.67% 39 Rate Rate Payment Payment $98,011.31 $131,722.24 40 Amount Amount 41
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