An investor purchases a commercial property for 2 million with a down payment of 400000 and finances the rest with mortgages at an annual interest rate of 5%, if the property gentrates an annual net cash flow of 150,000 what is the cash on cash return on investment 1 .4% 2. 6% 3. 7.50 4. 10%

Q: An investment is offered whereby £1000 is invested immediately, £2000 is invested in exactly…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Q7: You have just received OMR200M from a bank by requesting a loan. Without any deduction you have…

A: Using future value formula we can get period from formula.

Q: te is 7%, what is the capitalized cost of the house?  (Upload the picture of your complete solution…

A: Capitalized cost = Cost of construction + Present value of  Annual maintenance cost

Q: A land for farming has been purchased for $220,000. The annual profits for 7 years of farming is…

A: Hi there, Thanks for posting a question. As per Q&A guidelines, The solution for the first…

Q: fane has $1L025 and plan to purchase a 5-year certificate of degosit KD tht y interest, conmpounded…

A:

Q: If you place $25,500 into an 80-day short-term GIC at TD Canada Trust earning 0.55% simple interest,…

A: Maturity value = Amount invested + Interest earned

Q: You have the opportunity to purchase a security that will pay you $100,000 when it matures in three…

A: Solution:Rate of return refers to the return earned by the investor on per annum basis.So, rate of…

Q: 1) An investor invests £6,000,000 in a new factory, which takes a year to build. After…

A: Net present value refers to the method of capital budgeting used for evaluating the viability of the…

Q: Net cash flows Year 1 $60,000 Year 2 $40,000 Year 3 $70,000 Year 4 $125,000 Year 5 $35,000

A: Payback period is the time in which the initial investment is recovered through the future cash…

Q: Jake has approached you for a loan and based on your assessment, his cash-flow will accommodate a…

A: The determination of a loan which will be given to any borrower depends upon the borrowing capacity…

Q: Raghubhai

A: The objective of this question is to find out the rate of return expected from the purchase of an…

Q: Use this information for Wyoming Corporation to answer the question that follow. The management of…

A: Capital budgeting is a quantitive process of analyzing investments in capital projects. It involves…

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A: The NPV is the present value of the benefits less the initial costs. The IRR is that discount rate…

Q: You receive £5,000 in three years' time and the cost of capital for the project is 7%. What is that…

A: Solution: Present value stands for the value calculated in today's terms.  The formula for present…

Q: A borrower can obtain an 80 percent loan with an 8 percent interest rate and monthly payments. The…

A: The incremental cost of borrowing is the cost needed to pay over and above the cost of using one…

Q: the same total future cash inflows. The schedule of estimated cash receipts for each investment…

A: The question has asked to find out the correct option from the given options, and, compute the net…

Q: An investor owns a property that produces an NOI of $110,000 and has an annual debt service of…

A: Net Operating Income = NOI = $110,000Annual Debt Service = d = $70,000cost recovery = c =…

Q: The buyer of a certain machine may pay either 200,000 cash down payment and 200,000 annually for the…

A: Here,

Q: ou paid $725,000 for a duplex and financed 75% of the purchase price. Your forecasted cash flows for…

A: IRR is the internal rate of return and at this net present value is equal to zero and present value…

Q: DGE purchased a cement truck for $120,000. It is expected to last N=4 years. The $120,000 was…

A: Working Capital: It is the liquidity level of business to manage day to day business and is…

Q: use excel to answer A land for farming has been purchased for $220,000. The annual profits for 7…

A: Cost = $ 220,000 Period = 7 Years Annual profit = $ 55000 Salvage cost = $ 130,000 Borrowing rate =…

Q: what is the present value of this investment?

A: Present Value = C x [1 – [ (1 / 1 + r)^n] / r] Here, C = Cash Flow per period i.e. $21000 r =…

Q: You have the option of buying a property or just leasing it, in the first case you must pay 20% of…

A: Lease refers to the contract which state the terms under which lessor party who is owner of property…

Q: are offered the opportunity to invest $95 000 in a business which will yield annual net cash inflows…

A: Net present value is the main technique used in capital budgeting decision making and is the…

Q: You decide to invest money for buying a house. You initially invest $50,000 and plan on making…

A:

Q: You purchased a building 5 years ago for P 5M. Its annual maintenance expense has been P 250,000 per…

A: Cash Flow Diagram: It consists of a horizontal line that represent income and expenses over  time…

Q: DGE purchased a cement truck for $120,000. It is expected to last N=4 years. The $120,000 was…

A: Working capital refers to the funds that a company has available for its daily operations. It…

Q: where a $70,000 loan could be assumed at a 9 percent rate with a remaining term of 15 years and…

A: The question is based on the concept of calculation of present value of periodic loan payments by…

Q: s from today of the investment

A: Investment - A purchase made with the intention of creating income or capital growth is known as an…

Q: Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $25,820.…

A: Present value = $4,900 x PVAF (7 years, 6%)                       = $4,900 x 5.58238…

Q: rate is 6%,

A: Capitalized cost of house = Cost of construction + Present value of maintenance cost

Q: Assume that you purchase a property for $2,450,000 and it generates $195,000 per year of rental…

A: ANNUAL RATE OF RETURN   Annual rate of return is computed by deducting the cost of maintenance and…

Q: What would you be willing to pay (now) for the following yearend cash flows if your required return…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

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A: Since year 4 is the focal point, we need to discount every cash flow to year 4 to determine how much…

Q: A customer wants to buy a house with a cash value of 1,000,000 riyals, and the customer will pay 40%…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: NOI is expected to be $130,000 in year 1 with 5 percent annual increases. The purchase price of the…

A: IRR is the break even rate of return at which NPV is zero and present value of cash flow is equal to…

Q: Suppose you want to make an investment of $5,000, and you have two funds to choose from: Fund A and…

A: Future inflow refers to how much an investor is likely to receive as money from an investment.…

Q: Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a…

A: payback period = years before payback period + (cumulative cash flow in the year before recovery)/…

Q: Mr. John Backster, a retired executive, desires to invest a portion of his assets in rental…

A: net present value refers to the method used by the investors for decision-making which is calculated…

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A: An amortization schedule is a table or chart that provides a detailed breakdown of each periodic…

Q: A real estate developer bought land for $170000.00 down and monthly payments of $10550.00 for 10…

A: The loans are paid by monthly equal instalments these carry the payment for the interest and payment…

Q: An investment will pay $20,900 at the end of next year for an investment of $20,000 at the start of…

A: Initial investment (I) = $20,000 Cash flow after a year (CF) = $20,900 Interest rate (r) = 0.025 or…

Q: Beyer Company is considering the purchase of an asset for $240,000. It is expected to produce the…

A: calculation of payback period are as follows