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- Amber sold her personal property in 2019, with details as follows: Cost ₱ 600,000 Mortgage assumed by the buyer 350,000 Installment collection schedule: 2019 200,000 2020 200,000 2021 80,000 How much is the selling price?1. Juanita inherits $10,000 and invests it for 30 years at a “net” 9% return. How much money will she have at the end of the period?Komiko Tanaka invests $13,000 in LymaBean, Inc. LymaBean does not pay any dividends. Komiko projects that her investment will generate a 10 percent before-tax rate of return. She plans to invest for the long term. a. How much cash will Komiko retain, after-taxes, if she holds the investment for five years and then she sells it when the long-term capital gains rate is 15 percent?
- Generally stated within the real estate industry, a person can afford to buy a home costing 2.5 times his annual income. Based on this generalization, what would be the minimum weekly salary of s buyer $34.5TS house?David is interested in a rental apartment that would supply him with $60,000 at the end of year 1, $65,000 at the end of year 2, $59,000 at the end of year 3, $63,000 at the end of year 4, and $61,000 at the end of year 5. Also, he will sell the apartment for $1m at the end of year 5. • How much should David pay for this investment if he wants to earn 10 percent on his investment? • If the acquisition costs are $800,000, would David buy this apartment? What is IRR? PV of Time of cash flow Cash flow cash flow, 10% 1 4. Total: 2.Tammy had the following aggregate results from her 2019 investing activity: STCG $300,000 LTCG $450,000 STCL $260,000*** LTCL $390,000*** *** These are negative numbers, obviously. After the “netting procedure” described in the textbook, what is / are Tammy’s net 2019 result(s)?
- Ellen won a lottery that will pay her $100,000 a year for 20 years, or she can accept $1,500,000 today. A)Assuming she can earn 2.5% and maximizing her winnings is the only consideration, which offer should she accept? Show your calculations. B)Assuming she can earn 3%, what would be the lump sum today equivalent to the 20 payments of $100,000?Bob buys a property that costs $1,000,000. The property is projected to generate NOI as follows: Year NOI 1 $100,000 2 $105,000 3 $110,000 Bob will own the property for two years. Bob will sell the property at the end of year 2 at a cap rate that is 250 basis points lower than the cap rate at which he bought the property. Assume Bob finances his purchase with a 50% LTV Fixed Rate IO loan at an annual rate of 5% with annual compounding and annual payments. What is Bob’s annualized IRR for the investment in question? A. 83.54% B. 52.38% C. 78.93% D. 79.71%Your employer asks you to consult on the better approach to a decision. What should the corporation pay for an asset that will return them $150,000 at the end of year 1, then zero in year 2, then $400,000 in years 3 & 4, then zero in year 5, then $200,000 in years 6-10, assuming their discount rate is 3% (ignoring taxes) ?
- Mary invested P500,000 in an investment having a simple rate of interest of 8%. How long will take for it to earn P15,950?QUESTION 9 Bob buys a property that costs $1,000,000. The property is projected to generate NOI as follows: Year NOI $100,000 1 2 $105,000 3 $110,000 Bob will own the property for two years. Bob will sell the property at the end of year 2 at a cap rate that is 250 basis points lower than the cap rate at which he bought the property. What is Bob's annualized IRR for the investment in question A. 26.21% B. 30.47% C. 27.78% D. 14.89%