A company needs to immediately invest $ 800,000. With that you will perceive for the next 24 months $ 100,000 monthly with a monthly operating cost of $ 60,000.
The following is requested:
1. A bank offers you a credit of 80% of the initial investment. This credit is for a term of 24 months, with an annual interest rate of 11% payable monthly and type payments mortgage (equal monthly payment of principal plus interest). It is requested (2.1) to model the banking debt; (2.2) Calculate monthly company coverage of interest (ISCR) and total payment (DSCR); (2.3) Determine the IRR and multiple of the bank.
3. Model the net profit that remains for the company after the payment of the debt and calculate the IRR annual and multiple that is left to the company, given these returns and multiples would you take Debt?