-39.6 pv -39.

6
1 7.6 0.89 6.79
2 7.6 0.80 6.06
3 7.6 0.71 5.41
4 7.6 0.64 4.83
5 8.5 0.57 4.82
6 8.5 0.51 4.31
7 8.5 0.45 3.84
8 8.5 0.40 3.43
9 8.5 0.36 3.07
10 8.5 0.32 2.74
total 45

irr 15%
cash inflow $45
cash outfl -39.6
npv $5.69328
COST OF MACHINE 1 TIME 46.35
installment 8
interets 0.18 1
2
instalment ($11.37) 3
4
5
6
7
8
amount instalment interest paid principal paid loan left
46.35 11.37 8.34 3.03 43.32
43.32 11.37 7.80 3.57 39.75
39.75 11.37 7.16 4.21 35.54
35.54 11.37 6.40 4.97 30.56
30.56 11.37 5.50 5.87 24.69
24.69 11.37 4.44 6.93 17.77
17.77 11.37 3.20 8.17 9.60
9.60 11.37 1.73 9.64 -0.04

Instalment required to pay each year is 11.37

principal and interest paid each year are stated above

tax free interest

5.423
5.069
4.651
4.158
3.576
2.889
2.079
1.123

45,65
6.6079295154
 installmentinterest
pv 14 14.00 4.71 1.54
fv 21.28 10.83 4.71 1.20
n 4 7.32 4.71 0.81
implicit rat 11.04% 3.42 4.71 0.38
repaymentprincipal
3.17 10.83
3.51 7.32
3.90 3.42
4.33 -0.91
 amount payment interest principal residual value
1 65.00 15.62 9.75 5.87 59.13
2 59.13 15.62 8.87 6.75 52.38
pv 65 3 52.38 15.62 7.86 7.76 44.62
n 7 4 44.62 15.62 6.69 8.93 35.69
interest on 15% 5 35.69 15.62 5.35 10.27 25.42
installment ($15.62) 6 25.42 15.62 3.81 11.81 13.62
7 13.62 15.62 2.04 13.58 0.04

If the installment is paid each year then the amount is 15.62

1 65 9.75 74.75
2 74.75 9.75 84.5
3 84.5 9.75 94.25
4 94.25 9.75 104
5 104 9.75 113.75
6 113.75 9.75 123.5
7 123.5 9.75 133.25

If the loan is fully paid at the maturity then the amount is $133.25

n 7 1 0
pv 0 2
i 18.50% 3
fv ($172.90) 4
pmt $14.02 5
6
7
if he invests outside at 18.5% so that they can pay 133.25 at the maturity is $14.02

n 7
pv 0
i 12.025
fv -172.9013
pmt $17.12

To get 133.25 at the maturity the amount he should save yearly after tax is $17.12
after tax rate of return is 12.025
 65
7
15%
($172.90)

9.75