apartment it will be occupied 90% at all times. He desires an MARR of 20%. Other pertinent data are the following: Building investment $5,000,000 Rent per unit per month 6,000 Maintenance per unit per year 500 Property taxes 1% of investment Insurance 0.50% of investment Cost of building after 20 years 2,000,000 Study period 20 years a. What is the rate of return of the investment? Write the answer in percentage value, up to 2 decimal places. b. How much is the excess of the investment's cash flow? Roundoff answer to the whole number.

apartment it will be occupied 90% at all times. He desires an MARR of 20%. Other pertinent data are the following: Building investment $5,000,000 Rent per unit per month 6,000 Maintenance per unit per year 500 Property taxes 1% of investment Insurance 0.50% of investment Cost of building after 20 years 2,000,000 Study period 20 years a. What is the rate of return of the investment? Write the answer in percentage value, up to 2 decimal places. b. How much is the excess of the investment's cash flow? Roundoff answer to the whole number.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

An investment of $80,000 is expected to generate a net annual income of $27,000 for 5 years. If the study period is 20 years, and assuming this alternative will be repeated over the study period, what is the present worth of this investment if MARR is 11%? O a. $5,354 O b. $21,418 O c. $135,010 O d. $42,639 O e. $19,789
A project requires an up- front investment of $20,000 and provides cost savings of $3000 after two years, and then $3000 each year thereafter. Find the discounted payback period when the MARR = 10%.
Can someone explain how to do this pls?
(4) Evaluate the ROI.
An individual decides to invest in one of two projects, A and B, which both require the same initial outlay of $10 000. Project A yields $11 500 in 3 years’ time whereas Project B yields, $12 100 in 4 years’ time. Calculate the internal rate of return for each project.
The following three investment opportunities are available. The returns for each investment for each year vary, but the first cost of each is $20,000. Based on a future worth analysis, which investment is preferred? MARR is 9%/year.
Suppose you plan on spending $100/ac on restoring a forest on bare land you plan to buy. The project is projected to yield a harvest worth $2500/ac in 30 years. After which you sell the land for $400/ac. If you want to earn at least 6% rate of return, what is your willingness to pay for the land? Assume no other costs and revenues and that all values are in real terms. Show your work solving the problems a.) $490.28 b.) $265.63 C.) $636.27 d.) $404.92 e.) none of the above
(NOTE: ENTER YOUR ANSWER WITHOUT THE$ AND COMMA, ROUNDED TO THE NEAREST DOLLAR, for instance as 10023, not as $10,022.78.) A rental property manager anticipates a major repair, with a cost of $62906, will be necessary 5 years from now. Assuming the manager can earn 8% per year by placing funds in the company's investment pool, how much does he need to put in the investment pool today to have enough to finance the repair in 5 years? DO NOT ROUND IN YOUR CALCULATION STEPS (USE CALCULATOR MEMORY FUNCTIONS)! Answer:
E1
PLEASE USE EXCEL, SHOW FORMULAS, AND INCLUDESPiderplot HiTek Manufacturing is purchasing a large tract of land for a new facility. Its loan is for $3 million, but this may vary by plus or minus 10%. The loan will be paid off in 15 years using annual payments, but this could be as low as 10 years or as high as 30 years. If the interest rate is 10% (between 8% and 12%), How much is each payment? Construct a spiderplot. Which change would be most significant?
I need the manual excel formula as well as the FV Excel Function. C. Suppose you save $2,800 a year for 43 years into an investment account that earn 8.5% return, how much will you have at the end of the periods? Formula $ ??? Excel Functon $1,066,616.08