You are given the following information: Debt tenor Account Balance b/f Repayment Balance c/f Principal repayment CFADS Max DS Less: interest Max principal repayment [1,0] USD '000 USD '000 USD '000 USD '000 USD '000 USD '000 USD '000 DSCR. 1.50x i (% p.a.) 10.00% (250) 250 Yr 1 250.00 (41.67) 208.33 100.00 467 66.67 (70) (25.00) 396 41.67 Yr 2 208.33 (59.17) 149.17 120.00 80.00 (20.83) 59.17 Yr 3 149.17 (65.08) 84.08 120.00 80.00 (14.92) 65.08 Yr 4 Yr 5 84.08 12.49 (71.59) (12.49) 12.49 120.00 80.00 (8.41) 71.59 120.00 80.00 (1.25) 78.75 Yr 6 120.00 80.00 80.00

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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You are given the following information:
Debt tenor
Account
Balance b/f
Repayment
Balance c/f
Principal repayment
CFADS
Max DS
Less: interest
Max principal repayment
O $250k
O $290k
O $330k
O $396k
[1,0]
Ⓒ $467k
USD '000
USD '000
USD '000
USD '000
USD '000
USD '000
USD '000
DSCR.
1.50x i (% p.a.)
10.00%
(250)
250
467
(70)
396
Yr 1
250.00
(41.67)
208.33
100.00
66.67
(25.00)
41.67
Yr 2
208.33
(59.17)
149.17
120.00
80.00
(20.83)
59.17
Yr 3
Yr 4
149.17
84.08
(65.08) (71.59)
84.08
12.49
120.00
80.00
(14.92)
65.08
120.00
80.00
(8.41)
71.59
Yr 5
12.49
(12.49)
Out of the range of options given below, what is the most likely debt size for this example project? Note: Debt tenor = 6 years, DSCR = 1.50x, interest rate
= 10%, CFADS as represented in the image.
120.00
80.00
(1.25)
78.75
Yr 6
120.00
80.00
80.00
Transcribed Image Text:You are given the following information: Debt tenor Account Balance b/f Repayment Balance c/f Principal repayment CFADS Max DS Less: interest Max principal repayment O $250k O $290k O $330k O $396k [1,0] Ⓒ $467k USD '000 USD '000 USD '000 USD '000 USD '000 USD '000 USD '000 DSCR. 1.50x i (% p.a.) 10.00% (250) 250 467 (70) 396 Yr 1 250.00 (41.67) 208.33 100.00 66.67 (25.00) 41.67 Yr 2 208.33 (59.17) 149.17 120.00 80.00 (20.83) 59.17 Yr 3 Yr 4 149.17 84.08 (65.08) (71.59) 84.08 12.49 120.00 80.00 (14.92) 65.08 120.00 80.00 (8.41) 71.59 Yr 5 12.49 (12.49) Out of the range of options given below, what is the most likely debt size for this example project? Note: Debt tenor = 6 years, DSCR = 1.50x, interest rate = 10%, CFADS as represented in the image. 120.00 80.00 (1.25) 78.75 Yr 6 120.00 80.00 80.00
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