First state bank offers you a 115000 6-year term loan at 5, Financial Management

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First state bank offers you a 115000 6-year term loan at 5

1. Solar Energy is currently examining a project that will produce cash inflows of $21,605 a year for two years followed by $12,877 in year 3. The cost of the project is $38,441. What is the profitability index if the discount rate is 10 percent?

2. First State Bank offers you a $115,000, 6-year term loan at 5 percent annual interest. What will your annual loan payment be?

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Financial Management: First state bank offers you a 115000 6-year term loan at 5

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Financial Management: First state bank offers you a 115000 6-year term loan at 5

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