A specific loan of 5,400,000 at 4 % a year finances a project whose length, from the start of capitalisation to completion, is 14 months. During the project: a temporary delay of 2 months due to weather, inherent in the process (case data), and an extended interruption of 4 months for lack of funding of the contractor. No funds are temporarily invested. Calculate the capitalisation period and the borrowing costs eligible for capitalisation.
- Specific loan
- 5,400,000
- Annual interest rate
- 4 %
- Length of the project
- 14
- Temporary delay
- 2
- Extended interruption
- 4