By using excel, you are given the following data to calculate the Internal Rate of Return (IRR) of a 5-year store investment: - Annual income €455,000 - Purchase Rent: €585,000 - Rent Review every three years - Rent Review Cost: 4% - Vacancy Losses: 4% - Operating Expenses: 8% - Rent Growth Rate: 2.5% - Acquisition Costs: 3% - Selling Costs: 3% - Entry Cap Rate: 6% - Exit Cap Rate: 6.5% Is it a good investment if the Required Return is 10%?

By using excel, you are given the following data to calculate the Internal Rate of Return (IRR) of a 5-year store investment: - Annual income €455,000 - Purchase Rent: €585,000 - Rent Review every three years - Rent Review Cost: 4% - Vacancy Losses: 4% - Operating Expenses: 8% - Rent Growth Rate: 2.5% - Acquisition Costs: 3% - Selling Costs: 3% - Entry Cap Rate: 6% - Exit Cap Rate: 6.5% Is it a good investment if the Required Return is 10%?

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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Similar questions

A business received a for year $2,000,000 loan at an interest rate of 7% per year. The principal is going to be paid at the end of the third year. If the market interest rates on similar loans are 13% per year what is the net present value of the loan?
The following investment requires table factors for perlods beyond the table. Using Table 11-1, create the new table factor, rounded to five places, and calculate the compound amount (in $, rounded to the nearest cent.) Time Perlod (years) Nominal Rate (%) Interest New Table Compound Amount Principal Compounded Factor $18,000 29 annually %24
Display graphically cash flows (calculate repayment of the principal amount and interest for each period) on a differentiated-payment loan, if the principal amount is 2,000, maturity is 3 years, interest rate is 11% per year, and frequency of payments is semiannual.
Problem A DEF has total forecasted gross purchases of P4,500,000 relating to a major supplier for the coming year. The supplier is offering a credit term of 3/15, n/45. How much is the simple annual effective cost of paying on the 45th day? Problem B ABC can take a 45-day loan with a 15% interest deducted in advance, to be reapplied each time. How much is the simple annual cost of the loan? Problem C ABC’s bank offered a loan with conditions of a P5,000,000 face amount, 6-month term, 4% interest deducted in advance and bank charge of P30,000. How much is the compounded annual effective cost of the bank loan?
financial math A vehicle is financed as follows: Down payment $8,000.00 and three quarterly installments of $5,000.00. A buyer proposes: One down payment plus an installment of $8,000.00 in nine months. The agreed rate was 1% per quarter. What is the value of the entry proposed by the buyer, calculated on today's date and commercial criteria?
Based on the following data, calculate the items requested: Rental Costs Buying Costs Annual rent $ 7,530 Annual mortgage payments $ 10,100 (9,650 is interest) Insurance $ 160 Property taxes $ 1,840 Security deposit $ 725 Down payment/closing costs $ 4,800 Growth in equity $ 450 Insurance/maintenance $ 1,200 Estimated annual appreciation $ 1,850 Assume an after-tax savings interest rate of 5 percent and a tax rate of 26 percent. Assume this individual has other tax deductions that exceed the standard deduction amount. a. Calculate total rental cost and total buying cost. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) b. Would you recommend buying or renting? multiple choice Renting Buying
What was the term of a $4850 loan at 4.5% if the interest due at the end was $145.50? Answer (need work shown): 8 months What annual rate of interest was earned if a $15,000 investment for 5 months earned $546.88 in interest? Answer (need work shown): 8.75%
What is the approximate annual cost of foregoing the cash discount if the credit term is 2/15, net 40 and the company pays end of 50 days? Use 360 days a year. Group of answer choices 28.80 percent 29.39 percent 20.57 percent 20.99 percent
1. Rent is $40.00 per rentable square foot per year. Operating expenses are $20 during the first year and will increase by $1 every year. Assume a 5-year window and a 10 percent discount rate, what is the effective rent?
Prepare a duration table under the following assumptions a. $100,000 balloon loan b. Annual payments c.5-year balloon d. 20-year amortization e. 7% stated rate f. 9% yield
round off to the nearest cent
E1 - 27 - What is the future value (FV) after 6 years of the following investments: Payment $200 per month starting month 1. Interest Rate is 9% per year compounded quarterly, need in excel

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