A company takes a loan of $ 500,000 from a bank amortizable in 5 years and with an interest of 8% per year. Determine the benefits that the company must pay for its debt by a) constant amortization system, b) French amortization system and c) American amortization system. Build the cash flow diagram.

A company takes a loan of $ 500,000 from a bank amortizable in 5 years and with an interest of 8% per year. Determine the benefits that the company must pay for its debt by a) constant amortization system, b) French amortization system and c) American amortization system. Build the cash flow diagram.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter14: Multinational Capital Budgeting

Section: Chapter Questions

Problem 1IEE

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