What is the break even amount between buying and leasing given: Interest rate of 12% Tax rate of 21% After Tax interest rate: ___? PV of owning =$280,000.00 annuity due =1 Payment would be: ____? What is the value before taxes:
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- How much should you pay for land that has an income of $307/acre, annually, if the interest rate is 9.1%?Using the following expected interest payments, cost of debt = 5%, and tax-rate = 21%, calculate the TAX SHIELD. Expected interest year 1 = 50; year 2 = 35; year 3 = 20; year 4 = 10; 5 = 0 Group of answer choices 101.36 158.33 82.85 46.37Please Provide Answer with calculation
- 14. You are an employee of a consultant company and have been given the following information to do an investment analysis of a new small income-producing property for sale to a potential investor. What is the before tax NPV using a 15% equity discount rate? (round your final answer to whole numbers) Asking Price Rent Year 1 Growth Rent Vacancy and Coll Loss Expenses LTV Loan Interest Loan Term Payments Per Year Property Appreciation Rate Holding Period Selling Costs Equity Discount Rate $2,000,000 $250,000 2.50% Equity Loan 10% 40% 70% 6% 30 12 3% 5 0% 15% of rents of EGI $600,000 $1,400,000 years The above information results in the following investment analysis. years of sale pricePlease answer the question attached in the picture below.Want Correct Answer with calculation and explanation
- . You can buy property today for $2.3 million and sell it in 6 years for $3.3 million. (You earn no rental income on the property.) If the interest rate is 9%, what is the present value of the sales price? Formula PV = C / (1 + r)n PV = 3.3 / (1 + 9%)6 PV = 3.3 / (1.09)6 PV = 1,967,682.18 Is the property investment attractive to you? I am paying 2.3 million for the property and it is currently worth 1.9 million. I don’t care for paying more for what it is currently worth today. However, if I kept the land for 6 years, I could sell it for 3.3 million. That would be a net profit of 1 million. Yes, it is attractive to me. What is the present value of the future cash flows, if you also could earn $130,000 per year rent on the property? The rent is paid at the end of each year. Formula: FVn = C x (1 + r)n FVn = 130k x (1.09)6 FVn = 218,023.01 + 780,000 (130 x 6 years) FVn = 998,023.01 additional 998,023.01 + 3,300,000 = 4,298,023.01 Is the property investment attractive…A customer is offered an investment where interest is calculated according to the force of interest,t {0.02t 0 ≤ t ≤ 3, 0.045 t > 3If the customer invest GH¢1000 now, what rate of interest, compounded quarterly is earned over the first 4 year period.An investor owns a property that produces an NOI of $110,000 and has an annual debt service of $70,000 and the forecast of cost recovery and interest deductions are $38,427 and $58,593 respectively. The investor’s marginal tax rate is 35 percent. The investor’s projected cash flow after taxes is: A. $30,000 B. $35,457 C. $43,256 D. $25,821