ACC00716: Finance Session 1 - Business Case Studies 2023

Running head: BUSINESS CASE STUDIES
ACC00716 Finance Session 1
Name of the Student:
Name of the University:
Author’s Note:

BUSINESS CASE STUDIES1
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................4
Question 3........................................................................................................................................5
References........................................................................................................................................7

BUSINESS CASE STUDIES2
Question 1
a) The loan amount that has been borrowed by the company can be well calculated with the help
of the payment per month that has been made by the company on a monthly basis along with the
total time period for which the loan will be paid. The present value of the loan was calculated to
be $46,087.47, which shows the total amount of loan.
Particulars
Amount
($)
Payment Per Month
$
891.00
APR Rate 6.00%
Monthly Rate 0.50%
Time Period (In
Years) 5
Time Period (In
Years) 60
Future Value 0
Present Value of
Loan
$
46,087.4
7
b) The estimation of the annual revenue that would be in the year 5 can be well calculated with
the help of the current revenue multiplied by the average growth rate that has been given as
follows:
Revenue in Year 5: Current Revenue*(1+Growth Rate)^Year
Revenue in Year 5: $247.70*(1+9.90%)^5
Revenue in Year 5: $397.11
c) The Annual Percentage Rate (APR) that has been given for each of the loan offered has been
well converted into the (EAR). Out of the three loan option sit could be well found that Loan C is