COMPREHENSIVE CASE STUDY ASSIGNMENT INSTRUCTIONS

You are looking at the following projects and need to decide how best to deploy an inheritance you received of $$150,000.$ Using the information below, determine the following ratios. You may use an excel spreadsheet to complete a comprehensive review of each of the properties below. Once you have completed the ratios, you are to determine which property would be the best option. Support your answer in a report using appropriate ratios and any other relevant factors you deem necessary.

$$ Gross Income Multiplier

$$ Net Income Multiplier

$$ Operating Ratio

$$ Break Even

$$ Debt Coverage Ratio

$$ Overall Cap Rate

$$ Equity Dividend Rate

$$ Cash on Cash Return

$$ Present Value of Cash Flows

$$ Net Present Value

$$ Profitability Index

$$ Investment Value

$$ Internal Rate of Return

Which option would you select given the following factors:

Annual Growth Rate: $4\%$

Required Rate of Return: $8\%$

Tax Rate: $15\%$

Equity Available: $$150,000$

Loan Rate: $4\%$

Holding Period: $12$ Years

Annual Price Appreciation: $3\mathrm{.}5\%$ per year

$*$For this example, we will not consider the vacancy rate for now.

$$

Units Sales Price Avg Revenue Per Unit$/$Month Annual Operating Expenses $($Interest not included$)$

Duplex $2$ $ $125,000\mathrm{.}00$ $ $615\mathrm{.}00$ $ $6,642\mathrm{.}00$

Duplex #$22$ $ $105,000\mathrm{.}00$ $ $575\mathrm{.}00$ $ $6,210\mathrm{.}00$

Fourplex $4$ $ $245,000\mathrm{.}00$ $ $850\mathrm{.}00$ $ $22,160\mathrm{.}00$

Apartment Building #$116$ $ $600,000\mathrm{.}00$ $ $600\mathrm{.}00$ $ $69,840\mathrm{.}00$

Apartment Building #$232$ $ $1,200,000\mathrm{.}00$ $ $695\mathrm{.}00$ $ $162,096\mathrm{.}00$

Single Family Home #$11$ $ $189,000\mathrm{.}00$ $ $1,750\mathrm{.}00$ $ $11,010\mathrm{.}00$

Single Family Home #$21$ $ $215,000\mathrm{.}00$ $ $2,000\mathrm{.}00$ $ $13,400\mathrm{.}00$