Suggested structure for your final project 1. Describe the selected rental house(s), and explain why? Choose a few potential rental houses for comparisons Select at least one from these potential rental houses for analysis Describe the features of this rental house Explain reasons why you select this/these rental house(s), not others 2. Projected cash inflows and cash outflows Consider all of the items regarding revenues (i.e., rent), expenses (i.e., mortgage), and potential issues/costs (i.e., roof replacement, tenants move out) of the rental business. If needed, you can make assumptions on these items. 3. Calculate the project's NPV, IRR, and Payback. NPV o What is the discount rate used to calculate NPV, and why? In real estate, we can assume 10%-15% as the discount rate The number of years used to calculate NPV should match the number of years of your mortgage IRR The number of years used to calculate IRR should match the number of years of your mortgage Payback 4. How long does it take to save enough for the down payment? 5. How long will it take to fully own the rental house? 6. What are the potential issues (factors) that may affect your capital budgeting analysis? 7. What are the most important revenue/expense items for rental business? 8. Conclusion, lesson learned, implication, etc. Timelines (deadlines) o The files of (1) excel sheet, (2) Power Point slides (no more than 10 pages), and (3) written report (no more than 2 pages) are due by May 7. Please send me these files via email Suggested structure for your final project 1. Describe the selected rental house(s), and explain why? Choose a few potential rental houses for comparisons Select at least one from these potential rental houses for analysis Describe the features of this rental house Explain reasons why you select this/these rental house(s), not others 2. Projected cash inflows and cash outflows Consider all of the items regarding revenues (i.e., rent), expenses (i.e., mortgage), and potential issues/costs (i.e., roof replacement, tenants move out) of the rental business. If needed, you can make assumptions on these items. 3. Calculate the project's NPV, IRR, and Payback. NPV o What is the discount rate used to calculate NPV, and why? In real estate, we can assume 10%-15% as the discount rate The number of years used to calculate NPV should match the number of years of your mortgage IRR The number of years used to calculate IRR should match the number of years of your mortgage Payback 4. How long does it take to save enough for the down payment? 5. How long will it take to fully own the rental house? 6. What are the potential issues (factors) that may affect your capital budgeting analysis? 7. What are the most important revenue/expense items for rental business? 8. Conclusion, lesson learned, implication, etc. Timelines (deadlines) o The files of (1) excel sheet, (2) Power Point slides (no more than 10 pages), and (3) written report (no more than 2 pages) are due by May 7. Please send me these files via email