Financial Statement Analysis and Firm Performance
Crownroyalevp
FIN419r6wk5SignatureAssignmentTemplate.xlsxScenario 1
| Pay all of the interest (8% per year) and principal in one lump sum at the end of 5 years | |
| Amount | $ 300,000 |
| Period (years) | 5 |
| Interes rate | 8% |
| FV | = PV × (1 + r)n |
| Answer - | Total Payment |
| Interest Paid | |
Scenario 2
| Pay interest at the rate of 8% per year for 4 years and then a final payment of interest and principal at the end of the 5th year; | |
| Amount | $ 300,000 |
| Period (years) | 5 |
| Interes rate | 8% |
| Answer | |
| Annual Interest Payment - | |
| Year 5 Payment - | |
| Total Payment - | |
| Interest Paid - | |
Comparison
| Total Payment | Interest paid | |
| Scenario #1 | $ - 0 | $ - 0 |
| Scenario #2 | $ - 0 | $ - 0 |
| Which of the scenarios is the best option? | ||
| Answer: | ||
