You purchase a mixed use building in Queens that is expected to generate $845209 net operating income (NOI) in the following year. You finance your purchase with an $8,000,000 interest-only loan at a rate of 6.93%, compounded annually, with annual payments. What is your net income expected to be in the following year? State your answer as a number rounded to the nearest cent (e.g. if you get $13.57654, write 13.58)
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F3
You purchase a mixed use building in Queens that is expected to generate $845209 net operating income (NOI) in the following year. You finance your purchase with an $8,000,000 interest-only loan at a rate of 6.93%, compounded annually, with annual payments. What is your net income expected to be in the following year? State your answer as a number rounded to the nearest cent (e.g. if you get $13.57654, write 13.58)
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- Conestoga Plumbing plans to invest in a new pump that is anticipated to provide annual savings for 10 years of $50,000. The pump can be sold at the end of the period for $100,000. What is the present value of the investment in the pump at a 9% interest rate given that savings are realized at year end?Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 8%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?You want to purchase an office building in Brooklyn that is expected to generate $475554 net operating income (NOI) in the following year. You decide you want to take out a loan to finance the purchase of this property. It will be an IO loan at a rate of 6.82%, compounded annually, with annual payments. The lender will provide financing up to a minimum Debt Service Coverage Ratio (DSCR) of 1.2 based off the next year's NOI. What is the largest loan amount the lender will allow you to take based on the DSCR requirement? State your answer as a number rounded to the nearest cent (e.g. if you get $13.57654, write 13.58)
- You are considering the purchase of a property today for $400,000. You plan to finance 60.00% of the purchase price with a loan. The appreciation rate on the property value is expected to be 5.00% annually for the next three year Calculate the EAHE. please work it out in excelA real estate property is on the market. You have estimated it will give you net cash flows of $5136 per month. You hope to sell it in 9 years for $308182. Your required return is 9.46%, how much should you be willing to pay for the property today? Answer:2. You plan to purchase an office space in Chamblee's Chinatown for $50,000 at the end of year 2021. You estimate that by renting out that office space, you will receive a stream of rental income for the coming eight years at the end of each year as shown in below. After eight years, you estimate that you can still sell the office space for $45,000 at the end of the eighth year. Is this project a good investment if you project that the normal rate of return in this line of business is 12%? How about if the general rate of return is 15% ? 8%? Year 1 $6,000 Year 5 $7,500 Year 2 $6,500 Year 6 $8,500 Year 3 $7,000 Year 7 $8,500 Year 4 $7,500 Year 8 $8,500 3. Based on the information provided in Step 2 above, compute the Internal Rate of Return for the investment. 4. While you were waiting for your first job interview results to come, you spent several dollars to buy a Georgia Educational Lotto and were lucky enough to win a $1 million prize. The prize is to be awarded in 20 annual payments…
- You are considering the purchase of a property today for $300,000. You plan to finance it with an 80 percent loan. The appreciation rate on the property value is expected to be 4 percent annually for the next three years. Required: a. Approximate the expected annual average rate of appreciation on home equity for the next three years. b. What if you now think that a $300,000 purchase price may be somewhat high and that if you pay this price, the expected appreciation rates in your house price will be as follows: year 1 = 0%, year 2 = 2%, and year 3=3%. Approximate the expected annual average rate of appreciation on home equity for the next three years.When purchasing a $210000 house, a borrower is comparing two loan alternative. The first loan is a 90% loan at 10.25% for 25 years. The second loan is an 85% loan for 9.75% over 15 years. Both have monthly payments and the property is expected to be held over the life of the loan. What is the incremental cost of borrowing the extra money? A. 20.25% B. 16.17% C. 11.36% D. 12.42% Please show all stepsPlease explain how to do this in Excel. Please explain how you did it and what the results mean.You plan to buy a house in December 2023. The sale price is $650,000. You need to pay 20% down payments and borrow the additional 80% from Bank of America with a 30-year, 7.2% fixed-rate mortgage loan. You need to pay an equal MONTHLY payment starting from January 1, 2024, for a total of 30 years. (1) Calculate your expected monthly mortgage payment. (2) Develop the full amortization table for your mortgage loan. (3) When you prepare your 2024 tax filing, what is the total mortgage interest payment that you can consider for the tax deduction?
- You are thinking about purchasing an investment from Get-Rich-Quick Investmemnt company. If you buy the investment, you will receive $50 every month for five(5)years. Payment will be made at the end of each month. If your required rate of return is 9% how much should you be willing to pay for this investment? Group of answer choices $4,632.87 $2,735.25 $2,525.10 $2,408.67there is a house on sale for $800,000. You believe you can finance the home for $500,000 for 20 years at a 2% interest rate. What would the monthly principle and interest payment be for the acquird loan? Calculate using the PV funtion in excel.To finance the purchase of a new factory recently, you’ve arranged for a 40-year mortgage loan for 80 percent of then $1,400,000 purchase price. The monthly payment on this loan will be $10,300. What is the APR on this loan? What is the EAR in this case?