17. Based on your work in #16, calculate the expected ATCF, its std. Deviation, and a...

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17. Based on your work in #16, calculate the expected ATCF, its std. Deviation, and a certainty equivalent cashflow (just for year2), if your highest calculated ATCF has a 25% probability, your lowest ATCF has a 15% probability, and the base case ATCF (ques #9) has a 60% probability. 18 19 20 Based on the Building information provided for questions 1-8, calculate for buildings A and D, a) b) c) the break-even number of units (per month) and the percent of maximum occupancy, the DOL for each building at 50% occupancy. Which building would be the better investment, based on your answers to a) and b) above. Explain. You have just leased a property to a tenant; the lease term is 8 years with beginning of month payments locked in for the first 5 years. Payments will increase for the last 3 year term. Market rates are anticipated to remain constant for the first 4 years, with a decrease for the remaining term. Based on information provided below, calculate the present value of the lease, from your perspective. Year 1-5 lease rate Year 6-8 lease rate Mkt rate:Yr 1-4 $1,700 per month $1,400 per month $1,500 per month $1,500 per month 15% c/m 17% c/m Mkt rate:Yr 5-8 Owner's I/YR Tenant's I/YR Value of property: --- land & bldg: (at end of lease term) $600,000 A property has recently been listed for sale. It is a 4 unit prefabricated commercial building that had been moved onto the lot. The building was purchased for $400,000. Using the land residual method, calculate the value of the land, according to Hoskell, and the value of the total property, given: Year 1 NOI: safe rate: regular rate: holding period: $87,000 8% 11% 13 years 17. Based on your work in #16, calculate the expected ATCF, its std. Deviation, and a certainty equivalent cashflow (just for year2), if your highest calculated ATCF has a 25% probability, your lowest ATCF has a 15% probability, and the base case ATCF (ques #9) has a 60% probability. 18 19 20 Based on the Building information provided for questions 1-8, calculate for buildings A and D, a) b) c) the break-even number of units (per month) and the percent of maximum occupancy, the DOL for each building at 50% occupancy. Which building would be the better investment, based on your answers to a) and b) above. Explain. You have just leased a property to a tenant; the lease term is 8 years with beginning of month payments locked in for the first 5 years. Payments will increase for the last 3 year term. Market rates are anticipated to remain constant for the first 4 years, with a decrease for the remaining term. Based on information provided below, calculate the present value of the lease, from your perspective. Year 1-5 lease rate Year 6-8 lease rate Mkt rate:Yr 1-4 $1,700 per month $1,400 per month $1,500 per month $1,500 per month 15% c/m 17% c/m Mkt rate:Yr 5-8 Owner's I/YR Tenant's I/YR Value of property: --- land & bldg: (at end of lease term) $600,000 A property has recently been listed for sale. It is a 4 unit prefabricated commercial building that had been moved onto the lot. The building was purchased for $400,000. Using the land residual method, calculate the value of the land, according to Hoskell, and the value of the total property, given: Year 1 NOI: safe rate: regular rate: holding period: $87,000 8% 11% 13 years

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17 Using the highest and lowest probabilities given we can calculate the expected ATCF and its standard deviation Expected ATCF 025 23000 060 15000 015 10000 17600 Standard deviation sqrt025 23000 176... View the full answer