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