1 Start 1 2 5 6 8 IV 2 Key Assumptions 3 Construction cost ($) 2,500,000...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6649a6c2cfacc_8506649a6c20c75f.jpg)
Transcribed Image Text:
1 Start 1 2 5 6 8 IV 2 Key Assumptions 3 Construction cost ($) 2,500,000 4 Loan ($) 755,000 5 Loan interest rate 8.0% 6 Loan term (yrs.) 7 Hangar space (sq.ft.) 8 31,000 8 Rent ($/sq.ft. per mor 1.75 9 Rent inflator 2.3% 10 Operating Costs ($lyr 155.000 11 Cost inflator 2.3% + 12 Tax rate 21.0% 13 Discount rate 8.0% 14 Depreciation/year ($) 44,000 15 Cash Flows 16 17 18 19 20 21 22 23 24 = Net Operating Cash Flow 25 Rent Income minus: Operating Costs minus: Interest minus: Depreciation = Taxable Income minus: Taxes = Net Income minus: Principal minus: Cash Outlay at Start 651,000 665,973 681.290 (155,000) (158.565) (162,212) (60.400) (54,722) (48.589) (44,000) (44,000) (44,000) 696,960 712,990 729,389 (165,943) (169,760) (173,664) (41,965) (34,812) (27,087) (44,000) (44,000) 746,165 763,327 (177,658) (181,744) (18,743) (9,732) (44,000) (44,000) (44,000) 391,600 408,686 426,489 445,052 464.419 484,638 505,764 527,850 82,236 85,824 89,563 93.461 97,528 101,774 106,210 110,849 309,364 322,862 336.926 351,591 366,891 382,864 399,554 417,001 (70,991) [76 660) (82.792) (89,416) (96.569) (104,295) (112,638) (121,649) 238.373 246,202 254.134 262.175 270,322 278.569 286,916 295,352 (2,500,000) 26 plus: Depreciation 27 = Total Cash Flows 28 NPV 29 IRR (2,500,000) -446.099 [DX] 44.000 282,373 44.000 290.202 44.000 44.000 44,000 44,000 44,000 44,000 298,134 306.175 314,322 322,569 330.916 339,352 15,266,540 30 Note: Tax shields are the tax gains from expensing interest and depreciation. The formula is interest or depreciation expense times the tax rate 31 < Hangar NPV Loan amortization Break even v. MAR24 | + 1 Start 1 2 5 6 8 IV 2 Key Assumptions 3 Construction cost ($) 2,500,000 4 Loan ($) 755,000 5 Loan interest rate 8.0% 6 Loan term (yrs.) 7 Hangar space (sq.ft.) 8 31,000 8 Rent ($/sq.ft. per mor 1.75 9 Rent inflator 2.3% 10 Operating Costs ($lyr 155.000 11 Cost inflator 2.3% + 12 Tax rate 21.0% 13 Discount rate 8.0% 14 Depreciation/year ($) 44,000 15 Cash Flows 16 17 18 19 20 21 22 23 24 = Net Operating Cash Flow 25 Rent Income minus: Operating Costs minus: Interest minus: Depreciation = Taxable Income minus: Taxes = Net Income minus: Principal minus: Cash Outlay at Start 651,000 665,973 681.290 (155,000) (158.565) (162,212) (60.400) (54,722) (48.589) (44,000) (44,000) (44,000) 696,960 712,990 729,389 (165,943) (169,760) (173,664) (41,965) (34,812) (27,087) (44,000) (44,000) 746,165 763,327 (177,658) (181,744) (18,743) (9,732) (44,000) (44,000) (44,000) 391,600 408,686 426,489 445,052 464.419 484,638 505,764 527,850 82,236 85,824 89,563 93.461 97,528 101,774 106,210 110,849 309,364 322,862 336.926 351,591 366,891 382,864 399,554 417,001 (70,991) [76 660) (82.792) (89,416) (96.569) (104,295) (112,638) (121,649) 238.373 246,202 254.134 262.175 270,322 278.569 286,916 295,352 (2,500,000) 26 plus: Depreciation 27 = Total Cash Flows 28 NPV 29 IRR (2,500,000) -446.099 [DX] 44.000 282,373 44.000 290.202 44.000 44.000 44,000 44,000 44,000 44,000 298,134 306.175 314,322 322,569 330.916 339,352 15,266,540 30 Note: Tax shields are the tax gains from expensing interest and depreciation. The formula is interest or depreciation expense times the tax rate 31 < Hangar NPV Loan amortization Break even v. MAR24 | +
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Explain why some conditions on the market are regarded as anomalies and explain how that affects factor investing.
-
Consider the composite wall of Problem 3.13 under conditions for which the inside air is still characterized by T .i = 20C and h i = 30 W/m 2 K. However, use the more realistic conditions for which...
-
Write up a two-column cash book for a small furniture shop from the following details, and balance it off as at the end of the month: 2008 May 1 Started in business with capital of 1,000 in cash and ...
-
discuss transactional leadership and pathgoal theory?
-
Dillo Vineyards, a large winery in Texas, produces a full line of varietal wines. The company, whose fiscal year begins on November 1, has just completed a record-breaking year. Its inventory account...
-
Dice 4/16/ 2023 Math 1B Lab Directions: Evaluate the integrals. Do not skip steps. Write clearly. Do not assume the reader can guess your thoughts. All your steps will be graded as well as how well...
-
What will happen to the objective value if the Melding Time is decreased by 30 ? Constraints \table[[,Final Shadow Constraint Allowable Allowable],[Cell , Name,Value,Price,R.H. Side,Increase,Decrease]
-
A firm has earnings before taxes of $128 million and taxes of $39 million. The company pays $12 million in preferred dividends and $31 million in common dividends. There are 24 million shares of...
-
On January 1, 2024, White Water issues $470,000 of 7% bonds, due in 10 years, with interest payable annually on December 31 each year. Required: Assuming the bonds issue for $470,000, record the bond...
-
Compare and contrast digital evidence and non-digital evidence. Provide three examples of how they are similar and three examples of how they are different. You must use the provided course materials...
-
22.Determine d(x+1)(7x-3) and dx d 31-2 dt 5t+1 23. Find (a) (x'e') and (b) (e). dx 24. Find (a) (te'), (b) d(e) dt In problems 25-30, find the derivative of each function. 25. f(x)=(2x-8)5 26....
-
In health class, Alexandra measured her heart rate and found it to be 72 beats per minute. Alexandra is curious how many times her heart would beat over the course of the day at that rate. Assuming a...
-
Suppose Green Caterpillar Garden Supplies Inc. is evaluating a proposed capital budgeting project ( project Alpha ) that will require an initial investment of $ 4 0 0 , 0 0 0 . The project is...
-
Data on weekday exercise time for 20 females, consistent with summary quantities given in the paper An Ecological Momentary Assessment of the Physical Activity and Sedentary Behaviour Patterns of...
-
What is the difference between public relations and advocacy?
-
Explain the meaning of the terms, learning before doing, learning while doing, and learning after doing. Is one more important than the others?
-
What are the key relationships for a CEO?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App