Capital Yield - $770(Rent is compared with other properties in the same area and features)(rent/week) x 52

Fantastic news! We've Found the answer you've been seeking!

Question:

Capital Yield - $770(Rent is compared with other properties in the same area and features)(rent/week) x 52 = $40,040 (annual rent)

$40,040 $1,555,626(Price of Property) = 2.57% +3.9%(GDP growth) = 6.47%(Discount Rate)

-Management fees = 6%

Property 2

Capital Yield - $750(Rent is compared with other properties in the same area and features)(rent/week) x 52 = $39,000 (annual rent)

$39,000 $1,084,900(Price of Property) = 3.59% + 3.9%(GDP growth) = 7.49%(Discount Rate)

-Management fees = 6%

PLEASE find discounted cash flow for 6 years, IRR and NPV

Related Book For answer-question

Real Estate Finance and Investments

ISBN: 978-0073377339

14th edition

Authors: William Brueggeman, Jeffrey Fisher

See More Books

Posted Date: Mar 29, 2023 12:49 AM

See More Questions

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
The simple beam AB is subjected to a uniform distribution load as shown in the figure. Draw a shear force plot and find the position and value at which the shear force magnitude is maximized. A W L B
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
Steel It began January with 55 units of iron inventory that cost $35 each. During January, the company completed the following inventory transactions: Requirements 1. Prepare a perpetual inventory...
A company is deciding which of two new thermostat systems to produce and sell. The Basic system has variable costs of $8.00 per unit, excluding sales commissions, and annual fixed costs of $520,000;...
A fully amortizing CAM loan is made for $125,000 at 6 percent interest for 20 years. a. What will be the payments and balances for the first six months? b. What would payments be for a CPM loan? c....
Compare distributed databases to database servers.
Jackson, Inc.s fiscal year ends December 31. Selected transactions for the period 20-1 through 20-8 involving bonds payable issued by Jackson are as follows: 20-1 Oct. 30 Issued $600,000 of 10-year,...
At midday when a black grain storage facility is directly under the Sun, it receives 925 W of solar power per square meter of surface from the Sun. If this hot surface loses energy only by radiation...
Given two arrays each of length n, arr1, and arr2, in one operation, any two elements of an array can be swapped. This can occur any number of times. Find the maximum possible sum of i*(arr2[1]-...
Write an essay about healthcare workers privacy and confidentiality during a disease outbreak.
Under the rule of reason, conduct is unlawful if its anticompetitive effects outweigh its competitive benefits. (True/False)
Define monopolization.
Describe the rule of reason.
A unilateral refusal to deal cannot violate antitrust law. (True/False)
Why did the Great Recession lead to the decline of the Great Moderation consensus? Given events, why is it predictable that a new consensus has not emerged?
The market rate of return is 12 percent. What is the net present value of an investment that requires an outlay of $12000 and an expected cash inflow from the investment is $15000 a year from today?...
Explain the regulation of the secretions of the small intestine.
A borrower and lender negotiate a $20,000,000 interest-only loan at a 9 percent interest rate for a term of 15 years. There is a lockout period of 10 years. Should the borrower choose to prepay this...
Why do the monthly payments in the beginning months of a CPM loan contain a higher proportion of interest than principal repayment?
What is the accrual rate and payment rate on a mortgage loan?
Consider a two-level system, with basis $|1angle,|2angle$, and in this basis, a Hamiltonian with elements $\left(\begin{array}{ll}1 & 1 \\ 1 & 1\end{array} ight)$. Use the first form of the...
Use the practical variational method for the same harmonic oscillator ground state energy, with trial wave function $\psi_{a}(x)=e^{-a y^{2}}$.
Use the Ritz variational method for the harmonic oscillator, with trial wave functions $\psi_{1}(x)=$ $e^{-y^{2} / 2}, \psi_{2}(x)=e^{-y^{2}}, \psi_{3}(x)=e^{-2 y^{2}}$, where \(y=x \sqrt{m...

Capital Yield - $770(Rent is compared with other properties in the same area and features)(rent/week) x 52

Question:

Expert Answer:

To calculate the discounted cash flow IRR and NPV for both properties over a 6year period we need to estimate the net cash flow each year Net cash flo... View the full answer

Real Estate Finance and Investments

Students also viewed these finance questions