Suppose a construction project anticipates end of the month draws ofR4, 000,000, R3, 000,000 and R6, 000,000 consecutively. What will be the balance owed at the end of the third month if the interest on the loan is 7% per annum (nominal annual rate, compounded monthly), and no payments of either principal or interest are required during the construction period?

14. The Gross rent is R400, 000; there are R50, 000 in tenant improvement expenditures paid for by the landlord; there is a R2, 000,000 interest only loan at 8% annual interest; the depreciable cost basis of this residential property is R3, 000,000; the depreciation allowance is 5% annually, the owner's tax bracket is 28%. The vacancy rate for this property is 5%. And the Operation expenses are 20% of the rent. What is the Equity After-Tax cash flow in the first year of this property?

Answer rating: 100% (QA)

Construction Project To calculate the balance owed at the end of the third month we need to calculate the accumulated interest on the loan for each mo... View the full answer