Continuing off of the previous level, you successfully acquired the property with 60% financed by ABC Bank
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Question:
Continuing off of the previous level, you successfully acquired the property with 60% financed by ABC Bank (loan to value) with a 15-year fixed interest rate loan (loan term) at 4.0% per year (interest rate). You will have to pay 2.5% in loan expenses and you plan on using an amortization term of 15 years making this a fixed interest rate fully amortized loan. You will have yearly taxes of $1,500 for the next 5 years and you will have
1. Fill out the new assumptions in the correct location and tabs | |||||||||
2. Complete the amortization table | |||||||||
3. Calculate the initial equity investment and cash flow from sale of the property | |||||||||
4. Calculate the before and after tax cash flow from operations | |||||||||
5. Calculate the levered before and after tax NPV and IRR |
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: