Solve the spreadsheet with the assumptions in the box at the top. Asking Price Rent year 1
Fantastic news! We've Found the answer you've been seeking!
Transcribed Image Text:
Asking Price Rent year 1 Growth-Rent Vacancy & Coll. Loss Expenses Loan-to-Value Loan Interest Loan term Appreciation rate Holding Period Selling costs Equity discount rate Reinvestment rate Equity Loan Annual Loan Payment Mortgage Balance PGI Vacancy & Collection Loss EGI Operating Expenses NOI Debt Service BTCF Cash flow from sale in year Sales Price Sales costs Mortgage Balance Before-tax cash flow BTCF Total (a) BTIRR ON EQUITY BTIRR on Equity Year NOI Year 6 Resale Price Terminal Cap Rate (d) NET PRESENT VALUE NPV - Equity (e) PROFITABILITY INDEX Year Debt-Coverage Ratio (c) TERMINAL CAPITALIZATION RATE Present Value BTCF Initial Equity Investment Profitability Index: BTCF BTIRR on Equity (b) FIRST YEAR DEBT COVERAGE RATIO (DCR) Year 5 $1,250,000 $200,000 3.00% 10.00% of rents 35.00% of EGI 70.00% 11.00% 30 years Q 3.00% 5 years 0.00% of sale price 14.00% 6.00% year 1 1 1 5 2 2 2 3 3 100 4 stl 4 4 5 Кл 5 5 6 Asking Price Rent year 1 Growth-Rent Vacancy & Coll. Loss Expenses Loan-to-Value Loan Interest Loan term Appreciation rate Holding Period Selling costs Equity discount rate Reinvestment rate Equity Loan Annual Loan Payment Mortgage Balance PGI Vacancy & Collection Loss EGI Operating Expenses NOI Debt Service BTCF Cash flow from sale in year Sales Price Sales costs Mortgage Balance Before-tax cash flow BTCF Total (a) BTIRR ON EQUITY BTIRR on Equity Year NOI Year 6 Resale Price Terminal Cap Rate (d) NET PRESENT VALUE NPV - Equity (e) PROFITABILITY INDEX Year Debt-Coverage Ratio (c) TERMINAL CAPITALIZATION RATE Present Value BTCF Initial Equity Investment Profitability Index: BTCF BTIRR on Equity (b) FIRST YEAR DEBT COVERAGE RATIO (DCR) Year 5 $1,250,000 $200,000 3.00% 10.00% of rents 35.00% of EGI 70.00% 11.00% 30 years Q 3.00% 5 years 0.00% of sale price 14.00% 6.00% year 1 1 1 5 2 2 2 3 3 100 4 stl 4 4 5 Кл 5 5 6
Expert Answer:
Answer rating: 100% (QA)
Answer 1 Asking Price The asking price is 1250000 2 Rent Year 1 The rent in year 1 is 200000 3 GrowthRent The growth in rent is 300 annually 4 Vacancy Collection Loss The vacancy and collection loss i... View the full answer
Related Book For
Real Estate Finance and Investments
ISBN: 978-0073377339
14th edition
Authors: William Brueggeman, Jeffrey Fisher
Posted Date:
Students also viewed these finance questions
-
The managers of Favourite Fish are considering a new project in which they would purchase equipment to produce canned sardines. You are to perform capital budgeting computations relating to this...
-
The accountant at Fighting Kites has always prepared a budget that is calculated using only one estimated volume of sales. He has asked you to help him set up a spreadsheet that can be used for...
-
In this problem, you will process the sales and purchases transactions for the week of February 8 through February 14 for Vetter Vacuum Center. Step 1: Start Integrated Accounting 8e. Step 2: Load...
-
The figure shows the result of taking 25 SRSs from a Normal population and constructing a confidence interval for the population mean using each sample. Which confidence level 80%, 90%, 95%, or 99%do...
-
Why did the SEC delay declaring Googles IPO registration effective?
-
Nelson Company reported cost of goods sold of $690,000 last year and $720,000 this year. Nelson also reported accounts payable of $250,000 last year and $230,000 this year. Compute this year's...
-
Find the = 0.10 critical value for the chi-square distribution with 4 degrees of freedom.
-
Schuyler Company wishes to purchase an asset costing $117,000. The full amount needed to finance the asset can be borrowed at 14% interest. The terms of the loan require equal end-of-year payments...
-
6.Assume that the company uses the reciprocal method in distributing service department costs and that the Packaging department applies factory overhead based on requisitions. How much is the...
-
Solutions Plus is an industrial chemicals company that produces specialized cleaning fluids and solvents for a wide variety of applications. Solutions Plus just received an invitation to submit a bid...
-
How do political dynamics impact the landscape of program management and the policy formulation process? In what ways can public administrators strategically mitigate and navigate the challenges...
-
Find whether x-iy f(z) = = is x+y2 analytic or not
-
Examine what type of financial information could have been used in the situation your classmate described?
-
The proposal presents a Quality Management model to avoid fraud and waste in Health Care Operators. In Brazil we have 679 Health Operators, with 50 million beneficiaries, generating revenue of 264...
-
Assume you have a voice mailbox. Record an appropriate voice mail message for the following situation: You are attending the Administrative Professionals Conference for three days. Another...
-
How do you transcend the confines of conventional paradigms, ushering in a renaissance of thought and action where empowerment is not merely bestowed but cultivated through the cultivation of...
-
Q3. Consider an angular momentum 1 system, represented by the state vector 14) = 1 1 4 26 -3 4.4 (868) 1 = 1 2 10 What is the probability that a measurement of 1x yields the value 0 ? 6/8 Can you...
-
Why do bars offer free peanuts?
-
An investor is considering the purchase of a small office building. The NOI is expected to be the following: year 1, $200,000; year 2, $210,000; year 3, $220,000; year 4, $230,000; year 5, $240,000....
-
An interest only mortgage is made for $80,000 at 10 percent interest for 10 years. The lender and borrower agree that monthly payments will be constant and will require no loan amortization. a. What...
-
How do inflationary expectations influence interest rates on mortgage loans?
-
Mark Miller started his own delivery service, Miller Deliveries, on June 1,2008. The following transactions occurred during the month of June. Instructions (a) Show the effects of the previous...
-
Laura Geller started her own consulting firm, Geller Consulting, on May 1, 2008. The following transactions occurred during the month of May. Instructions (a) Show the effects of the previous...
-
On June 1, Michelle Bullock started Divine Cosmetics Co., a company that provides individual skin care treatment, by investing \($26,200\) cash in the business. Following are the assets and...
Study smarter with the SolutionInn App