Question 1We just signed a lease contract in a 200,000 SF office building complex for $25/SF/year withrents paid in arrears (at the end of the year) annually. The rent will increase by 3% per year.The discount rate is 10%/year.a. What is the value of this office building, assuming that the building is sold at the end ofyear 10 and the cap rate at that time is expected to be 10%? What is the implied cap rate attime 0?b. What is the value of this office building, assuming that the building is sold at the end ofyear 10 and the cap rate at that time is expected to be the same as today? What is the impliedcap rate at time 0 and 10?c. What is the value of this office building, assuming that the building will be held andrented indefinitely (perpetually)? What is the implied cap rate at time 0?d. What is the value if the rents are paid in advance (at the beginning of the year) and thebuilding is rented perpetually?

a. Current Value of Building as on lease= 200,000 SF Discounting Rate= 10% No. of years= 10 Years…

Answered: Question 1 We just signed a lease…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You need a car and decide to lease for 36 months. The original price is $20,000 and the trade value in 36 months, assuming you don't exceed the mileage allowance, is $5,000 (treat this as a future value). No down payment is required. If the interest rate is 9% APR compounded monthly, what is the lease payment? I need it witha solutuion $503.38 $5066.37 $5100.15 $510.67
QUESTION 22 Ann wants to buy a building. The annual NOI for the building will be $175,000. She wants to get a 20 year interest only fixed rate mortgage at an annual rate of 8.35% with annual compounding and annual payments to buy the building. The lender has a minimum Debt Service Coverage Ratio (DSCR) of 1.20. What is the largest annual loan payment the lender will allow Ann to make based on the DSCR? OA. $1,746,506.99 B. $210,000.00 OC. $145,833.33 OD. $102,600.26
13. You can purchase a 10,000 square foot office building for $1,900,000. You can finance your purchase with an 80% loan at 4.675% interest, requiring monthly payments over 25 years. Rents are $24.00 per square foot and expenses are $10.00 per square foot. You project vacancy to be 12% in years 1 and year 2, 8% in year 3 then 6% thereafter. You expect that rents will increase by 6% per year for years 2 and 3, then increase by 4% thereafter. You believe that expenses willincrease at a fixed rate of 5% per year. You expect to sell the building on a 7 cap, based on the following year’s income. For a holding period of 8 years. What is the (BEFORE TAX): Before Tax IRR on Equity ? Before Tax NPV @ 12% ?
A real estate broker decides to lease a car for 36 months. Suppose the annual interest rate is 7.8%, the negotiated price is $48,000, there is no trade-in, and the down payment is $3,000. Find the monthly lease payment (in dollars). Assume that the residual value is 48% of the MSRP of $51,800.
Consider a firm A that wishes to acquire an equipment. The equipment is expected to reduce costs by $5700 per year. The equipment costs $29000 and has a useful life of 7 years. If the firm buys the equipment, they will depreciate it straight-line to zero over 7 years and dispose of it for nothing. They can lease it for 7 years with an annual lease payment of $8000. If the after-tax interest rate on secured debt issued by company A is 7% and tax rate is 25%, what is the Net Advantage to Leasing (NAL)?(keep two decimal places) Answer: -18233.59
pls answer the following question
You need a 19000 loan option 1 a 30 year loan at apr of 7.5 option 2 a 15 year loan at apr of 6.5 what is the monthly payment for option 1 what is the monthly payment for option 2 what is the total payment of each which loan is better
need help with A only. The answer to B is 7.8%please help asap
When purchasing a $100,000 house, a borrower is comparing two loan alternatives. The first loan is an 80% loan at 4% with monthly payments of $591.75 for 15 years. The second loan is 90% loan at 5% with monthly payments of $526.13 over 25 years. What is the incremental cost of borrowing the extra money assuming the loan will be held for the full term? O 6.50% O 13.21% O 7.20% O 13.70%

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