stalkey

45. Ok I got why you multiply the 12% by 300,000 each year, but what does it mean that the full principal will be paid at the end of the fifth year? You have an initial cash outflow in year 0 of 300,000 and you pay interest each year on the 300,000, so why do you need to make a principal payment in year 5? This payment isn't included in the NPV calculation.

Also any help on the other Q?