1. Buying a house will cost 271,000$. You put 15% down and finance the rest at a rate of 5.1% compounded monthly for 30 years. Of the first payment, how much goes to the principle? Show work.
2. A project that is expected to generate 75,000$ NCFs in each of the four years of the project. The firm will have to have net capital spending of 205,000$ and must increase NWC by 89,000$ to get the project started. At the end of the project, the firm will be able to recover 60% of the increase in NWC. What is the firm's IRR? Show your work