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Q: I please need help. I am probably being blonde , but in Bus Val Model I have done val excl Financing . I now am putting in a finance amount to see what the impact would be as they will be purchasing the business. My question:where would I put the interest rate. It is at 0% because the figures used before finance inputted was nil interest cost ?
A: The interest rate is calculated from the Financed Amount and the Annual Interest Cost, you do not enter an interest rate, only the amount and interest, the rate is calculated. So to consider the finance cost simply add the amount financed and the annual interest cost.
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