Problem 1:( 20 Points) A $2,000,000 loan is supposed to be paid ba...

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Problem 1:( 20 Points) A $2,000,000 loan is supposed to be paid back in years with quarterly payments. If the APR-8% prepare the amortization table for this loan. in the amortization table, show each period's paid principle. paid Linterest total (cum. Linterest and pay-off (remaining balance) of the loan Problem 2: (24 points) Your company plans to do only one the following projects A, B,or c. Based on below yardsticks rank these projects from best to worst: 1) NPV where Discount Rate is 12% (9 points) 2) Srd Iteration of IRR using Newtonw-Raphson method with 1st Iteration=70% (6 points) 3) Discounted Payout (3 points) 4) MIRR where average investment opportunity rate is 15% (6 points) Net Operating Income tax is 20% ,If NOI is negative, assume Tax=0. Project A Time Investment Revenue OPEX o 2,000,000 o 1 1,000,000 5,200,000 200,000 2 1,000,000 3,550,000 200,000 3 2,400,000 200,000 4 o 1,800,000 200,000 5 870,000 200,000 Total 4,000,000 13,820,000 1,000,000 Project B Time Investment Revenue OPEX o 3,000,000 1 1,000,000 6,400,000 200,000 2 o 3,850,000 200,000 3 2,200,000 200,000 4 1,650,000 200,000 5 1,250,000 200,000 Total 4,000,000 15,350,000 1,000,000 Project C Time Investment Revenue OPEX 2,000,000 1 2,000,000 4,620,000 200,000 2 4,350,000 200,000 3 2,700,000 200,000 4 1,850,000 200,000 5 800,000 200,000 Total 4,000,000 14,320,000 1,000,000 - Aproduem - averty depleted - ines apor - For thet. be acheduls Boond Problem 4:( Points) A company wants to make decision if to farm-out project (either to company 'A' or company 'B' or complete the project stand-alone. Based on the terms of the stand alone and farm-out for each of the options, prepare the NPV table for all the cases and specify for what range of success probability, which option preferable. Company 'A' accepts 50% of the investment cost, 40% of the the OPEX and recieves 45% of the net revenue. Company W pays $350,000 upfornt, accepts 40% of the investment and OPEX cost and receives 40% of the net revenue Taxi 25% of net operating income (no tax if net operating income is negative). Discount Rate 12% You have to show your calculations in the cells, otherwise no point would be received Total project Cost/Revenue Time Table Time, year Revenue, Investment $ OPEX,S 1,500,000 2,000,000 1,000,000 250,000 1,900,000 300,000 25 1,800,000 1,000,000 150,000 3 1,300,000 o 150,000 4 1,000,000 350,000

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