Additional Information: 1. The investment includes $4,000 invested in treasury bills, which will mature in July 1, 2021. The remaining investments carries a maturity period more than one year, ie., will mature in 2022. 2. The land account consists of $30,000 for the cost of the land where the office buildings are located. The remaining balance represent the cost of the land held for sale. 3. $9,500 of cash balance will be used as an investment in marketable securities that is going to take place next year. The remaining represent commercial papers due in January 2022. 4. The company entered into a contract with the real estate company. Accordingly, the company has paid advance rent equal to two years rent. Prepaid rent reported in the balance sheet is related to advance rent paid for 2021 and 2022. 5. Out of $15,000 balance of Bond payable, $7,000 will be payable in 2015. Required: Prepare classified balance sheet as per 31* December 2020.

A Property is expected to have 5 Year NOI flow of $10,000, $12,000, $15,000, $18,000, and $10,000 and a final (year 5) sale price of $90,000. Using capitalization rate of 12% what is the estimated market value of the property? 97,354 104,664 87,641 100,919 90,724

Suppose the subject's net operating income is $100,000, the direct capitalization rate of the land is 3.5%, the direct capitalization rate of the improvements is 6.0%, and the value of the improvements is $750,000. What is the overall value of the subject property (round to the nearest thousand)? A. $2,321,000 ⒸB. $2,036,000 OC. $1,571,000 OD.$1,286,000

In Year 1, Darw Inc. purchased equipment with an expected useful life of 5 years. The initial cost of the equipment was $85,000. Darw Inc.cost of capital is 12%. At the time it purchased the equipment, Darw Inc. projected the following cash inflows from use of the equipment:    Year Projected Cash Inflow 1 $20,000 2 $30,000 3 $35,000 4 $25,000 5 $15,000 At the end of Year 5, the equipment had reached the end of its useful life. Darw Inc.determined that it had actually generated the following cash flows:   Year Actual Cash Inflow $10,000 $20,000 $30,000 $30,000 $30,000   2. Calculate the net present value that the equipment achieved, based on the actual cash inflows.

Interest During Construction Alta Company is constructing a production complex that qualifies for interest capitalization. The following information is available: Capitalization period: January 1, 2019, to June 30, 2020 Expenditures on project: 2019: January 1 May 1 $420,000 381,000 October 1 552,000 2020: March 1 June 30 Amounts borrowed and outstanding: 1,428,000 624,000 $1.6 million borrowed at 12%, specifically for the project $4 million borrowed on July 1, 2018, at 14% $18 million borrowed on January 1, 2017, at 8% Required: Note: Round all final numeric answers to two decimal places. 1. Compute the amount of interest costs capitalized each year. Capitalized interest, 2019 $ 933,000 X Capitalized interest, 2020 $ 2,052,000 X 2. If it is assumed that the production complex has an animated life of years and a residual value of $0, compute the straight-line depreciation in 2020. Alpha-numeric input field 115,825 X $ 3. Since GAAP requires accrual accounting, if a company capitalizes…

The acquisition price of a property is $380,000. The loan amount is $285,000. If the property’s NOI is expected to be $22,560, operating expenses $12,250, and the annual debt service $19,987, the debt coverage ratio (DCR) is approximately equal to

An apartment property that will be held for 10 years has the following forecasted cash flows before taxes: 1 2 3 4 $ 5 2,760 2,720 2,686 2,659 2,636 $13,387 $23,199 $88,400 EOP $90,500 6 7 8 9 10 2,581 It is expected that the end of year 10 sales proceeds before taxes will be $39,697. How much initial investment can an equity investor pay for the equity portion if the investor requires a 15-percent, before-tax return? $ 2,619 2,604 2,594 2,587

Assume that you purchase a property for $200,000 and it generates annual cash flows of $30,000 in years 1-3; and $45,000 in years 4&5. You are able to sell it at the end of year 5 for $400,000. Calculate the IRR for this investment property.

The capital investment committee of Ellis Transport and Storage Inc. is considering two investment projects. The estimated income from operations and net cash flows from each investment are as follows:   Warehouse   Tracking Technology Year Income fromOperations Net CashFlow   Income fromOperations Net CashFlow 1 $44,000   $145,000     $92,000   $232,000   2 44,000   145,000     70,000   196,000   3 44,000   145,000     35,000   138,000   4 44,000   145,000     15,000   94,000   5 44,000   145,000     8,000   65,000   Total $220,000   $725,000     $220,000   $725,000     Each project requires an investment of $440,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 10% for purposes of the net present value analysis. Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683…

An investment made with an expenditure of $160,000 at the start of the project. The income from the project at the end of each year for 5 years is $80000, $90000, $85,000, $75,000 and $70,000. He made an investment of $20000 again at the end of 2nd year. The maintenance will cost 1500$ for the first year and it increments by 500$ for the second year and third year onwards it increments by 1000$. The salvage value is 70,000$. Draw a CFD for the project and give the analysis of the project based on the CFD.