* 13. Jhulio is evaluating the purchase of a 2,000 square foot, 5-unit apartment building in the Bronx. A broker just advised him that a nearby building was sold for $800 per square foot, implying a 5% cap rate. Using the Sales Comp Approach, what is the estimated value of the building? O $1,600,000 O $16,000,000 O $160,000 O $60,000
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- 14. You are an employee of a consultant company and have been given the following information to do an investment analysis of a new small income-producing property for sale to a potential investor. What is the before tax NPV using a 15% equity discount rate? (round your final answer to whole numbers) Asking Price Rent Year 1 Growth Rent Vacancy and Coll Loss Expenses LTV Loan Interest Loan Term Payments Per Year Property Appreciation Rate Holding Period Selling Costs Equity Discount Rate $2,000,000 $250,000 2.50% Equity Loan 10% 40% 70% 6% 30 12 3% 5 0% 15% of rents of EGI $600,000 $1,400,000 years The above information results in the following investment analysis. years of sale priceMr. Johnson owns a small apartment building with an annual Gross Rent Roll of $325,000. Assume expenses are expected to be 40% of Gross Rent Roll, what is the valuation of the building using a 5 cap rate? Select the best approximate value: a) $2.9 million b) $3.9 million c) $4.9 million d) $5.9 millionYou purchase a $1,152,000 lake house and made a down-payment of $658,000. If you were to use the tvm solver to determine the monthy payment, what values would you enter for PV and FV?
- Here is what we know: We are looking at purchasing a Townhome in Gvegas Purchase price $190,000 Yearly taxes $1,400/yr, but if it's in the city limits, then add another $800/yr Yearly Home Owners Insurance $ 1,200/yr HOA (Home Owners Association) $900/yr Projected repair costs $900/yr Vacancy Rate 1 months rent Things to consider.... What if the AC unit goes out? • Vacancy Rates (What is that?) • Vetting Renters (What does that mean?) Tax benefits (Are there any?) Depreciation (How so) ⚫ Appreciation (How does it work)Suppose you decide to obtain a 4-year lease for a car and negotiate a selling price of$28,990, including license fees. The trade-in value of your old car is $3850. If you makea down payment of $2400, the money factor is 0.0027, and the residual value is$15,000, find each of the following.a. The net capitalized costb. The average monthly finance chargec. The average monthly depreciationd. The monthly lease paymentWhen purchasing a $210000 house, a borrower is comparing two loan alternative. The first loan is a 90% loan at 10.25% for 25 years. The second loan is an 85% loan for 9.75% over 15 years. Both have monthly payments and the property is expected to be held over the life of the loan. What is the incremental cost of borrowing the extra money? A. 20.25% B. 16.17% C. 11.36% D. 12.42% Please show all steps
- You have kust been offered a contract worth $1.16millon per year for 6 yean. Howeves, to take the contract, you will need to purchase some new equipment. Your discount rate for this peoject is 12.1X You are still negoliating the purchase price of the equipment. What is the nost you can pay for the equipment and still have a positive NPV? The mot you can pary for the equpment and actiove the12.1%annuar return is $ million. (Round so two decimal places)A real estate investor is considering the purchase of an apartment building that currently provides income of $30,000 and is expected to grow in income by 3% for the next 4 years. You would receive income from today, year 0, through year 4. At the end of year 4, they expect to sell the property for $800,000. The investor has a discount rate of 6%. How much should an investor be willing to pay for this property? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.Vincent was receiving rental payments of $3,000 at the beginning of every month from the tenants of her commercial property. What would be the value of her property in the market if she wants to sell it, assuming a market capitalization rate of 5.25% compounded annually? Round to the nearest cent -> SAVE PROGRESS SUE ENG CMS fq fio f11 AA ansert 6 8 6. 1/4 1/2 3/4
- 1.Calculate the NPV of the following project using a discount rate of 12 %. Yr 0 = -$500; Yearr1 = -$50; Yr2 = $50; Yearr3 = $200; Yearr4 = $400; Yearr5 = $400a.$118.75b. $208.04c. $ 61.22d.$ 618.752.You are buying your first house for $220,000, and are paying $30,000 as a down payment. You have arranged to finance the remaining $190,000 30-year mortgage with a 7% nominal interest rate and monthly payments. What are the equal monthly payments you must make?a. $1,976b. $1,110c. $1,264d. $1,5133.How much would $1,599 due in 9 years be worth today if the discount rate were 10.5%?a. $3,955.20b. $3,770.35c. $3,927.43d. $4,000.004. Apple company sales last year were $48,000, and its total assets were $25,500. What was its total assets turnover ratio?a. 1.10b. 1.99c. 1.21d. 1.885. you purchase 100 shares at a price of $RM45 per share. One year later, the share are selling for $47 per share. In addition, a dividend of $4 per share is paid at the end of the period. Determine the total return…Please solve using excel and please explaing the steps to find out the best choice for each market condition listed below (choices a, b, and c) You decide to buy a house of $250,000 with loan amount of $200,000 and you plan to sell the house in year 10. The lender offers the following three SAM choices with $5,000 origination cost for each choice: $200,000; 30 years; monthly payment; 0% interest rate; 50% of appreciated value of the property in year 10. In addition, if the property is sold for a loss in year 10, the lender pays nothing. $200,000; 30 years; monthly payment; 3% interest rate; 50% of appreciated value of the property in year 10 $200,000; 30 years; monthly payment; 5% interest rate; 25% of appreciated value of the property in year 10 The housing market conditions: a. Home price will appreciate 30% in total for the next 10 years; b. Home price will stay the same for the next 10 years c. Home price will decline 30% in total for the next 10 years.There is a $700,000 foreclosed home for sale in your neighborhood. You have been pre-qualified for a one-year loan at 4% interest to cover the full purchase price and anticipate it will take $50,000 to pay off an existing lien. You also know that you will need to invest $5,000 a month in the house for repairs. You know enough about the market to ascertain that this property will sell for $825,000 in one year. If you want a 15% return on your investment, should you make the purchase?