Question: Use the below information to complete the operations and reversion proformas (all the way down to after tax), then answer the following 5 questions Purchase

 Use the below information to complete the operations and reversion proformas
(all the way down to after tax), then answer the following 5
questions Purchase price $800,000 LTV 75% Term & Am 15 years Interest
rate 4% Closing costs $12,000 Holding period Annual income taxes (below) Marginal

Use the below information to complete the operations and reversion proformas (all the way down to after tax), then answer the following 5 questions Purchase price $800,000 LTV 75% Term & Am 15 years Interest rate 4% Closing costs $12,000 Holding period Annual income taxes (below) Marginal tax rate 30% (aka ordinary thic tax) Taxes due on sale $200,000 Discount rate (before tax) Selling expenses Exit cap rate 5% 6 years 15% 3% Operations YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 NOI $ 33,000 $ 38,000 $ 41,000 $ 47,000 $ 51,000 $ 56,000 $ 61,000 CAPEX $ (5.000) $12.000) $ (8,000) $.(2.000) $(10,000) (6.000) PBTCF $ 28,000 $ 32,000 $ 34,000 $ 39,000 $ 42,000 $ 46,000 Income taxes on annual operations $ (5,000) $ (6,000) $ (7.000) $ (8,000) $ (9,000) $ (10,000) What is the equity multiple for this investment? Use before tax cash flows, O 2.55x 0 2.72x 0 2.60x 2.48x 2.38x None of these are correct D Question 46 What is the after-tax NPV for this investment? O $23,905 $1,520 None of these are correct O-$8,155 O $32,486 What is the before tax IRR for this investment? 20.05% None of these are correct 0 -17.23 % O 20.23% O 19.09 % Question 48 2 pts Using the stated discount rate as the market discount rate, compute the market value of the property. Based on that calculation and the actual purchase price, by how much did this investor over pay for the property? $64,268 O $2,486 $107.985 $127,557 O None of these are correct What is the DCR in year 6? 1.11 O 0.98 01.09 O 1.05 O None of these are correct Use the below information to complete the operations and reversion proformas (all the way down to after tax), then answer the following 5 questions Purchase price $800,000 LTV 75% Term & Am 15 years Interest rate 4% Closing costs $12,000 Holding period Annual income taxes (below) Marginal tax rate 30% (aka ordinary thic tax) Taxes due on sale $200,000 Discount rate (before tax) Selling expenses Exit cap rate 5% 6 years 15% 3% Operations YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 NOI $ 33,000 $ 38,000 $ 41,000 $ 47,000 $ 51,000 $ 56,000 $ 61,000 CAPEX $ (5.000) $12.000) $ (8,000) $.(2.000) $(10,000) (6.000) PBTCF $ 28,000 $ 32,000 $ 34,000 $ 39,000 $ 42,000 $ 46,000 Income taxes on annual operations $ (5,000) $ (6,000) $ (7.000) $ (8,000) $ (9,000) $ (10,000) What is the equity multiple for this investment? Use before tax cash flows, O 2.55x 0 2.72x 0 2.60x 2.48x 2.38x None of these are correct D Question 46 What is the after-tax NPV for this investment? O $23,905 $1,520 None of these are correct O-$8,155 O $32,486 What is the before tax IRR for this investment? 20.05% None of these are correct 0 -17.23 % O 20.23% O 19.09 % Question 48 2 pts Using the stated discount rate as the market discount rate, compute the market value of the property. Based on that calculation and the actual purchase price, by how much did this investor over pay for the property? $64,268 O $2,486 $107.985 $127,557 O None of these are correct What is the DCR in year 6? 1.11 O 0.98 01.09 O 1.05 O None of these are correct

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