Question: #2 Please Assignment: Calculate Average Rate of Return for the following problems. Include all calculations and a table for each 1. A Client is planning
Assignment: Calculate Average Rate of Return for the following problems. Include all calculations and a table for each 1. A Client is planning to build a new building for a business, and they ask you to complete a feasibility estimate for the project. You estimate the project will have an initial cost of $1,500,000. The client wants to know the average rate of return on investment for the next 8 years The client expects the project to generate $150,000 dollars year 1: $155,000 in year 2: $180,000 Year 3: $190,000 in year 4: $250,000 year 5: $220,000 year 6: $200,000 year 7: and $180,000 year 8. Calculate the Average Rate or Return for the Project 2. A Client is planning to build a single story strip mall that is 21,000 SF. You estimate the cost to be $140 per/SF. She can rent space for $2.50 SF/Per Month (clients will pay for their own operating costs). She wants to know the average rate return for the next 5 years. The client estimates the rental space at following capacities. 70% rented year 1: 80% rented year 2: 90% rented year 3: 100% rented year 4: 90% rented year 5. Calculate the Average Rate of Return for the Project
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