Assume a 20-year, 8%, monthly amortizing, $4,000,000 mortgage on a residential property that was purchased for $5,000,000. Net operating income for Year 1 is $400,000. You can easily do these problems in Excel, and some with an online mortgage calculator, but you'll need to be able to do them using your calculator for Exam 4, so you might want to practice. For all answers, round to the nearest dollar (e.g., 423,444). See inclass 11/14/23 answers (page 5 for calculator instructions). What is the total mortgage payment in Year 1 (not the monthly amount)? What is the total amount paid in interest in Year 1? What is the mortgage balance at the end of Year 1? What is the annual depreciation amount? What would be the Year 1 pre-tax cash flow, taking the answers above into account? Assuming a 20% tax rate, what would be the taxes paid for Year 1? Assuming the foregoing information, what would be the after-tax cash flow for Year 1?
Assume a 20-year, 8%, monthly amortizing, $4,000,000 mortgage on a residential property that was purchased for $5,000,000. Net operating income for Year 1 is $400,000. You can easily do these problems in Excel, and some with an online mortgage calculator, but you'll need to be able to do them using your calculator for Exam 4, so you might want to practice. For all answers, round to the nearest dollar (e.g., 423,444). See inclass 11/14/23 answers (page 5 for calculator instructions). What is the total mortgage payment in Year 1 (not the monthly amount)? What is the total amount paid in interest in Year 1? What is the mortgage balance at the end of Year 1? What is the annual depreciation amount? What would be the Year 1 pre-tax cash flow, taking the answers above into account? Assuming a 20% tax rate, what would be the taxes paid for Year 1? Assuming the foregoing information, what would be the after-tax cash flow for Year 1?
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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Transcribed Image Text:Assume a 20-year, 8%, monthly amortizing, $4,000,000 mortgage on a residential property that was purchased for $5,000,000. Net operating income for Year 1 is
$400,000.
You can easily do these problems in Excel, and some with an online mortgage calculator, but you'll need to be able to do them using your calculator for Exam 4,
so you might want to practice. For all answers, round to the nearest dollar (e.g., 423,444). See inclass 11/14/23 answers (page 5 for calculator instructions).
What is the total mortgage payment in Year 1 (not the monthly amount)?
What is the total amount paid in interest in Year 1?
What is the mortgage balance at the end of Year 1?
What is the annual depreciation amount?
What would be the Year 1 pre-tax cash flow, taking the answers above into account?
Assuming a 20% tax rate, what would be the taxes paid for Year 1?
Assuming the foregoing information, what would be the after-tax cash flow for Year 1?
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