What is the before tax NPV using a 15% equity discount rate? (round your final answer to whole numbers)

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter16: Real Estate And High-risk Investments
Section: Chapter Questions
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Annual Loan Payment
Mortgage Balance
Year
PGI
VCL
EGI
Expenses
NOI
Debt Service
BTCF
Cash Flow from Sale in
Year
Sale Price
Sales Costs
Mortgage Balance
BTCF
$100,724
$1,302,761 year
1
$250,000
$256,250 $262,656 $269,223 $275,953 $282,852
$25,000 $25,625 $26.266 $26,922 $27,595 $28,285
$225,000 $230,625 $236,391 $242,300 $248,358 $254,567
$90,000
$92,250 $94,556 $96,920 $99,343 $101,827
$138,375 $141,834 $145,380 $149,015 $152,740
$100,724 $100,724 $100,724 $100,724 $100,724
$37,651 $41,110 $44,656 $48,290 $52,016
$135,000
$100,724
$34,276
5
$2,318,548
SO
$1,302,761
$1,015,787
5
2
3
4
5
6
What is the before tax NPV using a 15% equity discount rate? (round your final answer to
whole numbers)
Transcribed Image Text:Annual Loan Payment Mortgage Balance Year PGI VCL EGI Expenses NOI Debt Service BTCF Cash Flow from Sale in Year Sale Price Sales Costs Mortgage Balance BTCF $100,724 $1,302,761 year 1 $250,000 $256,250 $262,656 $269,223 $275,953 $282,852 $25,000 $25,625 $26.266 $26,922 $27,595 $28,285 $225,000 $230,625 $236,391 $242,300 $248,358 $254,567 $90,000 $92,250 $94,556 $96,920 $99,343 $101,827 $138,375 $141,834 $145,380 $149,015 $152,740 $100,724 $100,724 $100,724 $100,724 $100,724 $37,651 $41,110 $44,656 $48,290 $52,016 $135,000 $100,724 $34,276 5 $2,318,548 SO $1,302,761 $1,015,787 5 2 3 4 5 6 What is the before tax NPV using a 15% equity discount rate? (round your final answer to whole numbers)
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
price
Transcribed Image Text: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 price
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ISBN:
9781337669214
Author:
GARMAN
Publisher:
Cengage