a. You are considering acquiring a building with a Dollar General as tenant and the followingfinancial terms and performance ratios (see graphic). You want to buy it at an 8.5 cap. What is youroffer, at the 8.5 cap? Show your work.PROPERTY INFOFINANCIAL SUMMARYTenantDollar GeneralPurchase Price$1,519,661*Street Address511 Old Route 15Cap Rate6.80%CityPort TrevortonNet Operating Income$103,337StatePAPrice / SF$167Zip17864Rent/SF$40*Offering 2.5% Fee to Buy-Side BrokerAPN05-05-003DOLLAR GENERALCONTACT INFORMATIONGLA9,100 SFListing AgentNina McGaughyLot Size1.31 ACPhone Number(424) 325-2624Year Built2019INVESTMENT HIGHLIGHTSAbsolute Net (NNN) InvestmentDollar General operates on an Absolute Net (NNN) Lease with tenant fully responsible for maintenance,insurance and taxes providing the landlord with a low maintenance assetDOLLAR GENERALCorporate GuaranteeDollar General Corporation (NYSE:DG) is a fortune 500 company with over 80 years in business and $25.6billion in revenue FY'18.Future Rent Growth-10% Increases In Each Option PeriodThere are 10% rental increases built into the lease in each option period, providing the landlord with positiverent growth and a hedge against inflation..Strong Tenant CommitmentThe lease features an initial term of 15 Years with an additional three (3) 5-year options to extend the leasew OpanNERALRepresentative Photo

Net operating income is the necessary factor to be considered in purchase of property and using cap…

cial terms and performance ratios (see graphic). You want to buy it at an 8.5 cap. What is your , at the 8.5 cap? Show your work. PROPERTY INFO FINANCIAL SUMMARY Tenant Dollar General Purchase Price $1,519,661* Street Address 511 Old Route 15 Cap Rate 6.80% City Port Trevorton Net Operating Income $103,337 State PA Price / SF $167 Zip 1/864 Rent/SF $40 *Offering 2.5% Fee to Buy-Side Broker APN 05-05-003

cial terms and performance ratios (see graphic). You want to buy it at an 8.5 cap. What is your , at the 8.5 cap? Show your work. PROPERTY INFO FINANCIAL SUMMARY Tenant Dollar General Purchase Price $1,519,661* Street Address 511 Old Route 15 Cap Rate 6.80% City Port Trevorton Net Operating Income $103,337 State PA Price / SF $167 Zip 1/864 Rent/SF $40 *Offering 2.5% Fee to Buy-Side Broker APN 05-05-003

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A property has an NOI of $288,750 and a value of $4,812,500, the bank will issue a loan based on a 5% interest rate, 240 month term subject to a maximum DSCR of 1.35 and maximum LTV of 75%, what is maximum loan they will make? Please enter answer in following format, $10.00, would be 10.00, do not use $ signs.
Sub : Finance Pls solve ASAP.Please dont CHATGPT. Pls type the answer.Thank You An owner of the Atrium Tower Office Building is currently negotiating a five-year lease with ACME Consolidated Corporation for 20,000 rentable square feet of office space. ACME would like a base rent of $20 per square foot with step-ups of $1 per year beginning one year from now. Required: a. What is the present value of cash flows to ATRIUM under the above lease terms? (Assume a 10% discount rate.) b. The owner of ATRIUM believes that base rent of $20 PSF in (a) is too low and wants to raise that amount to $24 with the same $1 step-ups. However, now ATRIUM would provide ACME a $50,000 moving allowance and $100,000 in tenant improvements (TIs). What would be the present value of this alternative to ATRIUM? c. ACME informs ATRIUM that it is willing to consider a $23 PSF with the $1 annual stepups. However, under this proposal, ACME would require ATRIUM to buyout the one year remaining on its existing lease…
Evaluate the NPV for a green building with the following cost and savings data. Use a discount rate equal to the current market rate of return (mid-March 2020) - 7% annually. Show gross and net PV calculations (ROI not necessary): a. Incremental costs for achieving LEED credits: $50,000 b. Year 1 savings: $12,550 c. Year 2 savings: $12,100 d. Year 3 savings: $11,900 e. Year 4 savings: $11,750 f. Year 5 savings: $11,550
For Questions related to MoonRiver Logistics, refer to this given information. Accrued Service Fees 1,200,000.00 Additional Investments 300,000.00 Depreciation Expense 800,000.00 Gas and Oil 220,000.00 Insurance Expense 12,000.00 Prepaid Insurance 10,000.00 Rent Expense 240,000.00 Repairs and Maintenance 150,000.00 Riviera, Capital - Beginning 700,000.00 Riviera, Personal 180,000.00 Salaries Expense 500,000.00 Salaries Payable 25,000.00 Service Fees 8,000,000.00 Supplies Expense 40,000.00 Taxes and Licenses 55,000.00 Unearned Service Fees 1,800,000.00 Unused Supplies 30,000.00 Utilities Expense 60,000.00
Purchase Costs Down payment Loan payment Estimated value at end of loan Opportunity cost interest rate Leasing Costs Security deposit Lease payment End of lease charges Buying and Leasing $ 2,100 Total purchase cost Total leasing cost $ 530 for 36 months $ 4,900 7 percent $ 1,410 $ 520 for 36 months Based on the costs listed in the table above, calculate the costs of buying and of leasing a motor vehicle. Note: Round your answers to the nearest whole number. $ 1,430
Subject: accounting
1) CALCULATE THE B/C RATIO AND STATE WHETHER THE PROJECT IS WORTH DOING (YES/NO). Villa Homes wants to assess the profitability of a new project in which it builds a community center inside a growing neighborhood. Assume that the company leases the equipment it needs for $100,000, that the inflation rate is 4% and that the company expects to see a $200,000 annual profit increase over the next three years. Villa Homes can use the BCR formula to calculate the overall value of this new project.
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