interest rate is 8.6% APR over 5 years. To do the calculation we work with (loan amount)*(interest rate)/(years) N=60 I=0.7167 PV= 6,950,000 Payment =x The monthly payment for to pay back the loan from Regions Best is $142,926.43. With AirJet taking out a smaller amount for the loan they can pay back the loan faster but if they do not have enough the company won’t be able to finish the project which could result in a huge lose overall. Task 2 1. Growth rate = 5% According to the
Words: 712 - Pages: 3
Matthew Tango Course Project Part 2 Task 4 1. The project’s IRR is going to be 22%. The way to figure it out is going to be on the excel spreadsheet that is attached to this project 2. To calculate the NPV you are going to use the formula NPV=(1,100,000/1.15)+(1,450,000/1.15)^2+(1,300,000/1.15)^3+ (950,000/1.15)^4-3,000,000=$450,866.74. Attached is the excel spreadsheet that shows the work. 3. Based on what the NPV is for this project the company should definitely consider
Words: 1651 - Pages: 7
BUSN379 Course Project Part 1 Task 1: Assessing loan options for AirJet Best Parts, Inc. 1. Regions Best (1+ .1317/12)^12 -1 =0.14 EAR = 14% National First (1+ (6.75+3.25)/2)^2 -1 =.1025 EAR = 10.25% 2. Based on my calculations I would choose the National First loan because the EAR is only 10.25%. The EAR for the Regions Best loan is 14%. The ideal EAR for the company would be the smallest rate. 3. (1+8.6/12)^12 -1 = 8.95%
Words: 521 - Pages: 3
Quarterly So, Annual Dividend payment=4*$0.42=$1.68 Dividend Growth=5% For Lockheed Martin Corporation (LMT): Stock Price=$75.15 Dividend paid=$0.57 Quarterly So, Annual Dividend payment=4*$0.57=$2.28 Dividend Growth=5% * We have for AirJet Best Parts, Inc.,, Required rate of return=(7.68%+7.47%+8.03%)/3=7.73% Dividend Growth rate=1% Dividend Paid=$1.50 * We have, Required rate of return=7.73% Dividend on the preferred stock=$1.50 Common stock price is higher because
Words: 463 - Pages: 2
Course Project – Part I Task 1: Assessing loan options for Air Jet Best Parts, Inc. The company needs to finance $8,000,000 for a new factory in Mexico. The funds will be obtained through a commercial loan and by issuing corporate bonds. Here is some of the information regarding the APRs offered by two well-known commercial banks. Bank APR Number of Times Compounded National First Prime Rate + 6.75% Semiannually Regions Best 13.17 Monthly 1. Assuming that Air Jet Parts, Inc.
Words: 901 - Pages: 4
Abstract: Process industries, especially textile industries, have automatic machinery which are highly inflexible and have high volume/low variety products. This nature of the textile industry makes implementing lean manufacturing techniques a challenge; hence implementing lean techniques in a textile industry has been taken up as a challenge. We have chosen a combination of value stream mapping (VSM), 5S, kanban, kaizen, poka-yoke, and visual controls to improve the processes. The findings of
Words: 9856 - Pages: 40
