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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

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
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
Problem 1PS
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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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