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TOTAL CAPITAL INVESTMEN

BANK LOAN (50% INVESTMENT)


MARKET SHARE (40% INVESTMENT)
Annual payments to bank

• A= Total capital investment x


𝑟𝑎𝑡𝑒 𝑝𝑒𝑟 𝑝𝑎𝑦𝑚𝑒𝑛𝑡 1+𝑟𝑎𝑡𝑒 𝑝𝑒𝑟 𝑝𝑎𝑦𝑚𝑒𝑛𝑡 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑎𝑦𝑚𝑒𝑛𝑡𝑠
( )
1+𝑟𝑎𝑡𝑒 𝑝𝑒𝑟 𝑝𝑎𝑦𝑚𝑒𝑛𝑡 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑎𝑦𝑚𝑒𝑛𝑡𝑠 −1

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