Question
A printing press is considering borrowing GHS35, 000 to purchase a new generator set. This move is to argument power supply as the current power crisis is having a serious negative effect, on the company’s production and revenue base. Its bankers are prepared to give out the loan at 28%, it is expected that this debt would be paid off in 5 years with periodic annual payment into a sinking fund that pays 15% interest per annum.
a. Calculate the annual payment into the sinking fund.
b. Prepare a sinking fund schedule, assuming that payment is made at the end of the year.
Please the submission of this assignment is due by 24th April 2016
Thank you
a. Calculate the annual payment into the sinking fund.
b. Prepare a sinking fund schedule, assuming that payment is made at the end of the year.
Please the submission of this assignment is due by 24th April 2016
Thank you