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  • Finance Question 1

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    Varun Goel
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    Debt payment schedule: Initial debt = 85% i.e 1000 Crores Interest rate= 12 p.a Term= 7 years calculate the following: 1. Quarterly payments based on a fixed amount per period 2. We calculate the above asuming the 9 month moratorium on principle repayment. Calculate the amt. Of total principle repaid in 1 and 2 above at the end of the 3rd year frm the start of the debt term.

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    Debt payment schedule: Initial debt = 85% i.e 1000 Crores Interest rate= 12 p.a Term= 7 years calculate the following: 1. Quarterly payments based on a fixed amount per period 2. We calculate the above asuming the 9 month moratorium on principle repayment. Calculate the amt. Of total principle repaid in 1 and 2 above at the end of the 3rd year frm the start of the debt term.

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    18 views2 pages

    Finance Question 1

    Uploaded by

    Varun Goel
    Debt payment schedule: Initial debt = 85% i.e 1000 Crores Interest rate= 12 p.a Term= 7 years calculate the following: 1. Quarterly payments based on a fixed amount per period 2. We calculate the above asuming the 9 month moratorium on principle repayment. Calculate the amt. Of total principle repaid in 1 and 2 above at the end of the 3rd year frm the start of the debt term.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Question: Debt payment schedule:

    Initial debt = 85% i.e 1000 Crores


    Interest rate= 12 p.a
    Term= 7 years
    Calculate the following:
    1. quarterly payments based on a fixed amount per period
    2. we calculate the above asuming the 9 month moratorium on principle repayment.
    3. assuming that the DSCR is 1.25 for each period based on the payments calculated in one above, what is the benefit (that is
    delta NPV and delta IRR), from the moratorium on principle repayment?
    4. calculate the amt. of total principle repaid in 1 and 2 above at the end of the 3rd year frm the start of the debt term.

    Made by: Varun Goel

    1 3 Quaterly Payment based on fixed amount per period


    Total Capital= 10000000000 Repayment Period Installment Cash Out Cash In
    Loan Amount= 10000000000 0 0 1764705882.35 0
    Term= 7 1 532932334 532932334 666165417.5
    Intrest Rate= 12% 2 532932334 532932334 666165417.5
    Payment per year= 4 3 532932334 532932334 666165417.5
    Quarterly Installment= $532,932,334.36 4 532932334 532932334 666165417.5
    5 532932334 532932334 666165417.5

    2 6 532932334 532932334 666165417.5


    Total Capital= 10000000000 7 532932334 532932334 666165417.5
    Loan Amount= 10000000000 8 532932334 532932334 666165417.5
    Term= 7 9 532932334 532932334 666165417.5
    Intrest Rate= 12% 10 532932334 532932334 666165417.5
    Payment per year= 4 11 532932334 532932334 666165417.5
    Quarterly Installment= $574,278,710.39 12 532932334 532932334 666165417.5
    13 532932334 532932334 666165417.5
    14 532932334 532932334 666165417.5
    15 532932334 532932334 666165417.5
    16 532932334 532932334 666165417.5
    17 532932334 532932334 666165417.5
    18 532932334 532932334 666165417.5
    19 532932334 532932334 666165417.5
    20 532932334 532932334 666165417.5
    21 532932334 532932334 666165417.5
    22 532932334 532932334 666165417.5
    23 532932334 532932334 666165417.5
    24 532932334 532932334 666165417.5
    25 532932334 532932334 666165417.5
    26 532932334 532932334 666165417.5
    27 532932334 532932334 666165417.5
    28 532932334 532932334 666165417.5

    4 Principle repayment at the end of 3rd year


    Normal Repayment
    S.No Quarterly Installment Interest Principal
    0
    1 532932334 300000000 232932334
    2 532932334 293012029.98 239920304.02
    3 532932334 285814420.859 247117913.14
    4 532932334 278400883.465 254531450.53
    5 532932334 270764939.949 262167394.05
    6 532932334 262899918.128 270032415.87
    7 532932334 254798945.651 278133388.35
    8 532932334 246454944.001 286477390
    9 532932334 237860622.301 295071711.7
    10 532932334 229008470.95 303923863.05
    11 532932334 219890755.059 313041578.94
    12 532932334 210499507.69 322432826.31
    1000 Crores

    n one above, what is the benefit (that is


    nt?
    rd year frm the start of the debt term. Total Capital= 11764705882.3529
    Total Equity= 1764705882.35294 Total Cash= 666165417.5

    fixed amount per period Quaterly Payment based on moratorium


    Net Earnings Repayment Period Installment Cash Out Cash In Net Earnings
    -1764705882.35 Disc. Rate Assumed= 15% 0 0 1764705882.35 0 -1764705882
    133233083.5 1 300000000 366165417.5 0 366165417.5
    133233083.5 2 300000000 366165417.5 0 366165417.5
    133233083.5 3 300000000 366165417.5 0 366165417.5
    133233083.5 NPV1= $501,952,658.82 4 574278710 91886707.5 0 91886707.5
    133233083.5 NPV2= $555,464,146.58 5 574278710 91886707.5 0 91886707.5

    133233083.5 Moratorium-Normal 6 574278710 91886707.5 0 91886707.5


    133233083.5 Delta NPV= $53,511,487.76 7 574278710 91886707.5 0 91886707.5
    133233083.5 Delta IRR= 1.5% 8 574278710 91886707.5 0 91886707.5
    133233083.5 9 574278710 91886707.5 0 91886707.5
    133233083.5 IRR1= 6.1% 10 574278710 91886707.5 0 91886707.5
    133233083.5 IRR2= 7.6% 11 574278710 91886707.5 0 91886707.5
    133233083.5 12 574278710 91886707.5 0 91886707.5
    133233083.5 13 574278710 91886707.5 0 91886707.5
    133233083.5 14 574278710 91886707.5 0 91886707.5
    133233083.5 15 574278710 91886707.5 0 91886707.5
    133233083.5 16 574278710 91886707.5 0 91886707.5
    133233083.5 17 574278710 91886707.5 0 91886707.5
    133233083.5 18 574278710 91886707.5 0 91886707.5
    133233083.5 19 574278710 91886707.5 0 91886707.5
    133233083.5 20 574278710 91886707.5 0 91886707.5
    133233083.5 21 574278710 91886707.5 0 91886707.5
    133233083.5 22 574278710 91886707.5 0 91886707.5
    133233083.5 23 574278710 91886707.5 0 91886707.5
    133233083.5 24 574278710 91886707.5 0 91886707.5
    133233083.5 25 574278710 91886707.5 0 91886707.5
    133233083.5 26 574278710 91886707.5 0 91886707.5
    133233083.5 27 574278710 91886707.5 0 91886707.5
    133233083.5 28 574278710 91886707.5 0 91886707.5

    Moratorium
    Balance S.No Quarterly Installment Interest Principal Balance
    10000000000 0 0 10000000000
    9767067666 1 300000000 300000000 0 10000000000
    9527147361.98 2 300000000 300000000 0 10000000000
    9280029448.839 3 300000000 300000000 0 10000000000
    9025497998.305 4 574278710 300000000 274278710 9725721290
    8763330604.254 5 574278710 291771638.7 282507071.3 9443214218.7
    8493298188.381 6 574278710 283296426.561 290982283.44 9152231935.26
    8215164800.033 7 574278710 274566958.05783 299711751.94 8852520183.32
    7928687410.034 8 574278710 265575605.499565 308703104.5 8543817078.82
    7633615698.335 9 574278710 256314512.364552 317964197.64 8225852881.18
    7329691835.285 10 574278710 246775586.435488 327503123.56 7898349757.62
    7016650256.343 11 574278710 236950492.728553 337328217.27 7561021540.35
    6694217430.034 12 574278710 226830646.21041 347448063.79 7213573476.56

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