(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:

(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:

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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am. 136.
You own a real estate investment company and your interns have provided the below annual estimates of NOl for an office building you can acquire today for $5m. They also estimate you would receive $6.3m in net sale proceeds when the property is sold at the end of 3 years based on paying 5% brokerage expenses. PNC bank has offered you a 3-year $3m interest-only loan at 5% with annual payments and no origination fees. How much taxable income would you be eligible to deduct during the first year due to the mortgage interest deduction? Please round your answer to the nearest dollar Year 1 Year 2 Year 3 Year 4 NOI $367.530 $378,799 $390,406 $402.361
Your landlord is planning to renovate the pool in your apartment. The New pool will cost 152,895 dollars, which will add money to you rent but will increase the revenue for your landlord by 54,500 at year 4 and 87325 at years 10. He calculates that the operational cost will be 13250. The poll has a salvage value of 68,560 after 8 years. a) At a discount rate of 12.45% find the present value of this plan b) draw a cash flow diagram and show if your land lord's plan is viable or not
Please Show me the calculations!! A real estate investor is considering the purchase of an apartment building that currently provides income of $30,000 and is expected to grow in income by 3% for the next 4 years. You would receive income from today, year 0, through year 4. At the end of year 4, they expect to sell the property for $800,000. The investor has a discount rateof 6%. How much should an investor be willing to pay for this property?
You must decide whether to buy, build or lease a building for your business needs over the next 10 years. If you decide to build, you must determine if it is better to buy an existing building and modify it or buy land and build one to match your needs. Leasing an appropriate building will cost $10,000 per month with an annual increase of 3% per year and will require some retrofitting to suit your needs ($700,000). Empty land will cost $2,500,000 and the construction of a new building would be $3,000,000. You can buy an existing building for $2,500,000 but you will have to modify it to your needs at a cost of $1,200,000. However, the building itself is quite old and will be at the end of its useful life when the ten years are up. You estimate that the land alone is worth $2,000,000. There is a municipal election scheduled in the next months. The frontrunner, who has an estimated 70% chance of winning, is prioritizing core services and the environment. If they win, there is a 65% chance…
The owners of a condominium building wish to save enough money to replace the roof on their building in 10 years. The new roof is projected to cost $55,500. How much must they deposit monthly into an account earning j12-3% in order to have enough money for the new roof? Your Answer:
A neighborhood shopping center is expected to generate after-tax cash flow of $750,000 per year (at end of year) indefinitely. If an interested buyer has a cost of money of 13 %, how much will he be willing to pay for this shopping center? A $6.64 million B) $7.50 million $5.77 million D $2.21 million
Hi There! I solved the problem below, but can you answer the question and put everything on an excel spreadsheet and show the formulas please for the questions below. You are offered the opportunity to put some money away for retirement. You will receive 10 annual payments of $5,000 each beginning in 26 years. If you desire an annual interest rate of 12% compounded monthly, answer the following two questions: How much would you be willing to invest today? How much would the money (that you will be willing to invest today) be worth at the end of your last payment (i.e., in year 35)? Amount that you would be willing to invest today = PV = $5,000/(1.01)26*12 + $5,000/(1.101)27*12 + $5,000/(1.01)28*12 + $5,000/(1.01)29*12 + $5,000/(1.01)30*12 + $5,000/(1.01)31*12 + $5,000/(1.01)32*12 + $5,000/(1.01)33*12 + $5,000/(1.01)34*12 + $5,000/(1.01)35*12 = $1,388.638 Amount that would the money worth at the end of your last payment = FV = $1388.64 * (1+ 0.01)35*12 = $90691.52
I don't understand please help with answer and explanation
K You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $4,400 and will be posted for one year. You expect that it will generate additional revenue of $836 a month. What is the payback period? The payback period is months. (Round to one decimal place.)
One year ago, the Jenkins Family Fun Center deposited $3,400 into an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $5,200 to this account. They plan on making a final deposit of $7,400 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a rate of return of 6 percent? Multiple Choice $18,516.29 $19,019.26 $19,431.85 $19,928.37 $17,421.48
You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $4,200 and will be posted for one year. You expect that it will generate additional revenue of $714 a month. What is the payback period? The payback period is ___ months (Round to one decimal place)

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