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- D4) Bob buys a property that costs $1,000,000. The property is projected to generate NOI as follows: Year NOI 1 $100,000 2 $105,000 3 $110,000 Bob will own the property for two years. Bob will sell the property at the end of year 2 at a cap rate that is 250 basis points lower than the cap rate at which he bought the property. What is Bob’s annualized IRR for the investment in question A. 26.21% B. 14.89% C. 30.47% D. 27.78%Jason wants to purchase property for $88,000 cash or he can purchase the property for $30,000 down and 2 equal payments of $30,000 at the end of 1 and 2 years respectively. If money is worth 4% compounded monthly then which is the best plan now? a) How much will Jason save now by choosing the best plan?If your father wants to invest in a house and give you the following facts. Purchase price SR 1000,000 Annual maintenance: SR 5000 Annual income: SR 50000 Expected sale price after 15 years: SR 900,000 The IRR of the investment is nearest to A. 4% B. 1% C. 8% D. 7%
- You can buy property today for $3.9 million and sell it in 5 years for $4.9 million. (you have no rental income on the property). 1. If the interest rate is 8% what is the present value of the sales price? 2. Is the property investment attractive to you? 3. What is the present value of the future cash flows if you are could earn $290000 per year rent on the property? The rent is paid at the end of each year. 4. Is the property investment attractive to you now?An investor has an opportunity to buy a commercial property and to sell it after 15 years. Rents from the property will be $24,000 and he expects them to increase at a rate of 3% per year annually. His required rate of return on this investment is 12%. At what price would he be indifferent to buying or not buying the investment? Round off to the nearest $1. Select one: O a. $213,656 O b. $800,000 O c. $171,429 O d. $240,000You can buy a piece of land today that you except will be worth $15000 in 9 years. Assuming your money is worth 9%, how much would you be willing to pay for the property?
- Eddie buys a new apartment for $500,000 at the beginning of 2010. At the end of 2010 an identical new apartment is selling for $550,000. The nominal interest rate in 2010 is 5 percent and the physical depreciation rate on the apartment is 10 percent. What is the annual user cost in percent to Eddie from purchasing the apartment? Select one: Oa. 15 percent O b. 6 percent -5 percent O d. -10 percent Ое. 5 рercentPlease solve to find out the best choice for each market condition You decide to buy a house of $250,000 with loan amount of $200,000 and you plan to sell the house in year 10. The lender offers the following three SAM choices with $5,000 origination cost for each choice: $200,000; 30 years; monthly payment; 0% interest rate; 50% of appreciated value of the property in year 10. In addition, if the property is sold for a loss in year 10, the lender pays nothing. $200,000; 30 years; monthly payment; 3% interest rate; 50% of appreciated value of the property in year 10 $200,000; 30 years; monthly payment; 5% interest rate; 25% of appreciated value of the property in year 10 The housing market conditions: a. Home price will appreciate 30% in total for the next 10 years; b. Home price will stay the same for the next 10 years c. Home price will decline 30% in total for the next 10 years.Exhibit 1-A Future value (compounded sum) of $1 after a given number of time periods Period 1% 1.010 1.020 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 1.020 1.040 1.040 1.082 1.125 1.170 1.217 1.050 1.103 1.158 1.216 1.276 1.340 1.407 1.030 1.061 1.060 1.124 1.070 1.145 1.225 1.311 1.403 1.110 1.232 1.368 1 1.080 1.090 1.100 1.166 1.260 1.360 1.469 1.188 1.210 3 1.030 1.061 1.093 1.191 1.295 1.331 1.041 1.126 1.159 1.194 4 1.082 1.262 1.412 1.464 1.518 5 1.104 1.126 1.338 1.611 1.772 1.685 1.870 1.051 1.539 1.062 1.072 6. 1.265 1.419 1.501 1.587 1.677 1.316 1.949 2.144 1.149 1.230 1.504 1.606 1.714 1.828 1.993 2.076 2.305 1.594 1.689 8 1.083 1.172 1.267 1.369 1.477 1.718 1.851 1.305 1.344 1.384 2.358 1.423 1.480 1.094 1.195 1.551 1.838 1.999 2.172 2.558 2.839 3.152 10 1.105 1.219 1.629 1.791 1.967 2.159 2.367 2.594 1.710 2.105 2.252 2.410 11 1.116 1.243 1.539 1.898 2.332 2.580 2.853 12 1.127 1.268 1.426 1.601 1.796 2.012 2.518 2.813 3.138 3.498 1.138 1.149 2.720 3.452 3.797 4.177 4.595 5.054 5.560…
- Please show how to solve this step by step. A house with price of $500,000 Suppose that there is an $8,500 origination cost. 20% down payment and loan amount $400.000 30-year fixed rate mortgage with interest rate as follows (choices a. b. c. and d.) What is the effective cost for each choice if Robert will hold the mortgage for 30 years? Which choice should Robert make? What is the effective cost for each choice if Robert will hold the mortgage for only 12 months? Which choice should Robert make? Based on the answers above, which mortgage choices (b, c and d) are not properly priced? Please Explain WhyYou want to buy a $210,000 home. You plan to pay $10500 as a down payment, and take out a 30 year loan for the rest.a) How much is the loan amount going to be?3.) Engr. De Ocampo is planning to buy a condominium. If he is to pay 100k per month with a down payment of 2million and an interest of 12% compounded monthly. How many years will it take for him to pay it full if the accumulated price of the condominium is 20million? ANSWER: y = 8.6230yrs 4.) Engr. Tiu will buy a house with a price of 5million if paid in cash. If he wants it fully paid in 10years with an interest of 10% compounded weekly. How much must he pay every week? ANSWER: A = 15,219.8246 5.) Engr. Kirk plans to buy a gaming rig with a total amount of P150,000. If he want to pay this every month partially for 4 years with an interest of 4%. How much will he pay every month? ANSWER: A = 7077.0971
