Unit 6 HW

xlsx

School

Park University *

*We aren’t endorsed by this school

Course

620

Subject

Finance

Date

Apr 3, 2024

Type

xlsx

Pages

Uploaded by ggatotho816213

Problem 27-6 Alternative A: Forgo the discount on its trade credit agreeme Alternative B: Alternative C: Which alternative is the cheapest source of financing for Hand-to-M Principal $10,000 Term of loan 30 Days in a year 365 Alternative A: Forego trade discount Credit Terms 2.00% Additional days 20 Interest rate per period 0.20% Annual rate 44.59% Alternative B: Borrow from Bank A APR 12.00% Compensating balance 5.00% Fee $100.00 Сomplete the steps below using cell references to given data or copy/paste a formula across a row or down a column, an absolu function is to be used, the directions will specify the use of that reference to the cell in which the data is found. Make your com directed, use the earliest appearance of the data in your formul The Hand-to-Mouth (H2M) is currently cash-constrained, and must They owe the supplier $10,000 with terms of 2/10 Net 40, so the su expires). Alternatively, they can pay the full $10,000 in one month Borrow the money needed to pay its supplier will require a (nointerest) compensating balan Because H2M has no cash, it will need to bor Borrow the money needed to pay its supplier has a 1% loan origination fee, which again H

Total borrowed $10,610.53 Interest paid -$78.78 Interest & fee paid $21.22 Periodic rate 0.21% Annual rate -3% Alternative C: Borrow from Bank B APR 15.00% Compensating balance 0.00% Origination fee 1.00% Fee $100.00 Total borrowed $10,100.00 Interest paid $101.00 Interest & fee paid 201.00 Periodic rate 2.00% Annual rate -3% Cheapest loan cost (0.03) This alternative is: Requirements 1. Start Excel - completed. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. In cell D17 , by using cell references, calculate the additional days o In cell D18 , by using cell references, calculate the implicit interest In cell D19 , by using cell references, calculate the annual cost of pa In cell D26 , by using cell references, calculate the total amount to b In cell D27 , by using cell references, calculate the interest paid for In cell D28 , by using cell references, calculate the sum of interest a In cell D29 , by using cell references, calculate the periodic rate by amount (1 pt.) . In cell D30 , by using cell references, calculate the annual rate for A In cell D37 , by using cell references, calculate the origination fee to In cell D38 , by using cell references, calculate the total amount to b

12. 13. 14. 15. 16. 17. 18. Save the workbook. Close the workbook and then exit Excel. Subm In cell D39 , by using cell references, calculate the interest paid for In cell D40 , by using cell references, calculate the sum of interest a In cell D41 , by using cell references, calculate the periodic rate by amount (1 pt.) . In cell D42 , by using cell references, calculate the annual rate for A In cell D44 , by using cell references and the function MIN , find the In cell D45 , select from the dropdown which alternative should be

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