complexes, Faimer neights and Crerishaw Village. After comiering with the present owners, Mrs. Jackson rids developed the following estimates of the cash flows for these properties. Palmer Heights Yearly Aftertax Cash Inflow (in thousands) Probability $ 40 012 45 0.2 60 0.2 75 0.2 80 0.2 Crenshaw Village Yearly Aftertax Cash Inflow (in thousands) Probability $ 45 0.2 50 0.4 60 0.2 70 0.2 a. Find the expected cash flow from each apartment complex. Note: Enter your answers in thousands (e.g. $10,000 should be enter as "10"). Answer is complete but not entirely correct. Expected Cash Flow (in thousands) Palmer Heights Crenshaw Village S 53,000 x 62,000X b. What is the coefficient of variation for each apartment complex? Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Coefficient of Variation Palmer Heights Crenshaw Village

complexes, Faimer neights and Crerishaw Village. After comiering with the present owners, Mrs. Jackson rids developed the following estimates of the cash flows for these properties. Palmer Heights Yearly Aftertax Cash Inflow (in thousands) Probability $ 40 012 45 0.2 60 0.2 75 0.2 80 0.2 Crenshaw Village Yearly Aftertax Cash Inflow (in thousands) Probability $ 45 0.2 50 0.4 60 0.2 70 0.2 a. Find the expected cash flow from each apartment complex. Note: Enter your answers in thousands (e.g. $10,000 should be enter as "10"). Answer is complete but not entirely correct. Expected Cash Flow (in thousands) Palmer Heights Crenshaw Village S 53,000 x 62,000X b. What is the coefficient of variation for each apartment complex? Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Coefficient of Variation Palmer Heights Crenshaw Village

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 54PSA: Classification of Cash Flows Rolling Meadows Country Club Inc. is a privately owned corporation that...

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You have been asked to develop a pro forma statement of cash flow for West Office Plaza. The information given to you is listed below. Property Information: WEST OFFICE PLAZA Rentable Area Age Number of Stories Number of Tenants 312,000 square feet 8 years 15 40 Financial Information: Base Rent Average Other Income/Parking/Storage Expenses Recoverable from Tenants Current Vacancy $ 20 per square feet $ 2.10 per square feet $ 3.10 per square feet 5% Expenses: Management/Administration/Security/Ownership Property Taxes Insurance General Operations/Leasing Expense/Marketing Utilities Janitorial/cleaning Business Taxes Other: Recurring CAPEX/Improvement Allowance $ 696,206 $ 678,000 $ 431,200 $ 670,000 $ 1,162, 100 $ 492,000 $ 113,000 $ 703,000 Required: a. Develop a pro forma statement of cash flow for a base year showing net operating income (NOI) for West Office Plaza.
A*) You are hired as financial manager in Abis Investment Co., you made cash flow projection for two different projects. You are asked to estimate the feasibility of the projects by using the following investment criteria: NPV, IRR, MIRR and BCR. They are mutually exclusive. Show all your calculation. The details of that projects are given below: Year 0 1 2 3 4 5 Project A -1,000 1,200 4600 1,800 -8,000 5,000 Project B -2,000 1,000 3600 800 8,000 500 Discount rates 12% 13% 12% 14% 15% 11%
Please show detailed steps and correct
You have been asked to develop a pro forma statement of cash flow for West Office Plaza. The information given to you is listed below. Property Information: WEST OFFICE PLAZA Rentable Area Age Number of Stories Number of Tenants Financial Information: Base Rent Average Other Income/Parking/Storage Expenses Recoverable from Tenants Current Vacancy Expenses: 334,000 square feet 8 years Management/Administration/Security/Ownership Property Taxes Insurance General Operations/Leasing Expense/Marketing Utilities Janitorial/Cleaning Business Taxes Other: Recurring CAPEX/Improvement Allowance Revenue Add: 15 40 Less: Less: Operating expenses Required: a. Develop a pro forma statement of cash flow for a base year showing net operating income (NOI) for West Office Plaza. WEST OFFICE PLAZA Total operating expenses Cap expenses/Improvement allowance $20 per square feet $ 3.20 per square feet $ 4.20 per square feet 5% $ 698,400 $ 683,500 $ 433,400 $ 675,500 $1,167,600 $ 497,500 $ 118,500 $ 708,500
Tom Alexander has an opportunity to purchase any of the investments shown in the following table, price single yr cash flow yr of receipt a$7,500 $14,615 6b$225 $1,514 21c$1,425 $4,472 11d$375 $16,972 41 . The purchase price, the amount of the single cash inflow, and its year of receipt are given for each investment. Which purchase recommendations would you make, assuming that Tom can earn 10% on his investments? The present value of Investment A is $ (Round to the nearest cent.) The present value of Investment B is $ (Round to the nearest cent.) The present value of Investment C is $ (Round to the nearest cent.) The present value of Investment D is $ (Round to the nearest cent.) Which…
Bruin, Incorporated has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ 41,300 -$ 41,300 1 19,100 6,300 2 17,800 14,200 B 4 15,200 17,900 8,400 30,300 a-1. What is the IRR for each of these projects? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. a-2. If you apply the IRR decision rule, which project should the company accept? b-1. Assume the required return is 11 percent. What is the NPV for each of these projects? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b-2. Which project will you choose if you apply the NPV decision rule? a-1. Project A Project B a-2. Project acceptance b-1. Project A Project B b-2. Project acceptance % %
Fransico Ltd. is trying to determine which of three projects it wants to invest in. All three projects have been analyzed into Net Present Value amounts. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Calculate the Net Present Value based on the following information: Cash Flows Project 2 Project 6 Project 12 Present Value of net cash inflows $491,900 $778,300 $503,700 Initial InvestmentSingle line $146,000Single line $407,400Single line $206,400Single line Single lineNet Present ValueDouble line Single lineDouble line Single lineDouble line Single lineDouble line 2. Calculate the Profitability Index for each of the projects. Round to two decimal places. Project Present value of net cash inflows / Initial Investment = Profitability Index 2 / = 6 / = 12 / = 3. Based on the Profitability Index, which project should be selected?
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The management of Unter Corporation, an architectural design firm, is considering an investment with thefollowing cash flows:Year Investment Cash Inflow1 ......................... $15,000 $1,0002 ......................... $8,000 $2,0003 ......................... $2,5004 ......................... $4,0005 ......................... $5,0006 ......................... $6,0007 ......................... $5,0008 ......................... $4,0009 ......................... $3,00010 ......................... $2,000Required:1. Determine the payback period of the investment.2. Would the payback period be affected if the cash inflow in the last year were several timesas large?
both parts of the question please
Nikul
Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 −$ 28,000 −$ 28,000 1 13,400 3,800 2 11,300 9,300 3 8,700 14,200 4 4,600 15,800 a-1. What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. If the required return is 10 percent, what is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. At what discount rate would the company be indifferent between these two projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)