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- Please clearly explain the steps on how you determine the levered-before-tax-annual rate of return on your capital and please determine the portion of the return that is expected from the annual cashflows and the portion that is expected as a result of property price appreciation, the current market price the property is being sold for is $2,890,000. the Excel Spreadsheet is included as an attached image. Thank You in advance!Based on the following information, what is the company's Unlevered FCF for the period: EBIT of $500 mm, tax rate of 20%, Depreciation and Amort of $200 mm, Capex of $250 mm and an investment of $50 mm in Net Working Capital. a. $500 mm b. $300 mm c. $650 mm d. $225 mm Please answer fast i give you upvote.The investment scorecard you've been keeping for office properties in you market has the following entries: Comparable Property A Net Operating Income: $105,000 Sale Price: $1,329,000 Comparable Property B Net Operating Income: $56,000 Sale Price: $675,000 Comparable Property C Net Operating Income: $83,000 Sale Price: $1,012,000 Based on the approach we learned in lecture, estimate the Market Capitalization Rate for your area. Show your work and explain your reasoning.
- A company is thinking of investing in one of two potential new products for sale. The projections are as follows: Year Revenue/cost £ (Product A) Revenue/cost £ (Product B)0 (150,000) outlay (150,000) outlay 1 24,000 12,0002 24,000 25,3333 44,000 52,0004 84,000 63,333 Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%. Which product should be chosen and why?You must choose between two investments, G and W. The profitability index (PI), net present value (NPV) and internal rate of return (IRR) of the two investments are as follows: Criteria Investment G Investment W NPV –12 000 40 000 PI 0,985 1,053 IRR 20% 24% Which investment(s) should you choose, considering all the above criteria, if the cost of capital is equal to 21% per yearAn investor has a certain amount of money available to invest now. Three alternative investmentsare available. The estimated profit in Kwacha of each investment under each economic conditionare indicated in the following payoff table:Event Investment SelectionA B CEconomy declines 500 -2000 -7000No charge 1000 2000 -1000Economy Expand 2000 5000 20,000Based on his own past experience, the investor assigns the following probabilities to eacheconomic condition:( )( )( )Economy declines 0.30No change 0.50Economy expands 0.20PPP===vii. Compute the coefficient of variation for each investment. viii. Compute the return-to-risk ratio (RTRR) for each investment.ix. Based on (vii) and (viii), what investment would you choose?
- Calculate the EAR of the following investment, entered as a percentage (Example: if your answer is 0.145, enter 14.5) Year Number Cashflow 0 -11400 1 3500 2 3000 3 3100 4 2800 Your Answer:Given below is the information on various sets of investments. Asset Holding Period Return (HPR) Holding Period (%) Unit Trust- ABP 28 3.5 years RK Share 17 1 year Real Estate 11 9 months MAR Bonds 19 2.8 years MNF Share -2 3 months Calculate the annualised holding period returns for each asset. Based on your calculation of annualised holding period returns in (i) above, which asset would be the best choice for investment? Why?Terri Allessandro has an opportunity to make any of the following investments: The purchase price, the lump-sum future value, and the year of receipt are given below for each investment. Terri can earn a rate of return of 6% on investments similar to those currently under consideration. Evaluate each investment to determine whether it is satisfactory, and make an investment recommendation to Terri. The present value, PV Data table Investment A Purchase Price Future Value Year of Receipt $20,032 $28,000 5 B $402 $1,000 21 с $3,266 $7,000 11 D $4,173 $20,000 46 (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Print Done ×
- Suppose that you are attempting to value an income-producing property using the direct capitalization approach. Using data from comparable properties, you have determined the overall capitalization rate to be 7.0%, a reasonable discount rate of 9%, and an exit cap rate of 12%. If the projected first-year net operating income (NOI) for the subject property is $135,500, If the projected second-year net operating income (NOI) for the subject property is $145,500, and the projected final- year total cash flow for the subject property is $1,155,500 what is the indicated value of the subject using direct capitalization? Enter the answer below as an absolute value (a positive number), no dollar sign. Rounding to the nearest whole number (no decimal places) is ok. Your Answer: Answerences Rental Costs. Annual rent Insurance Security deposit Buying Costs Annual mortgage payments Property taxes Insurance, maintenance Down payment, closing costs Growth in equity Estimated annual appreciation $ 7,520 152 1,050 Rental cost Buying cost Total Cost $ 10,600 ($ 9,606 is interest) 2,170 Assume an after-tax savings interest rate of 5 percent and a tax rate of 28 percent. a. Calculate the total rental cost and total buying cost. 1,920 4,500 994 3,000The interest of a compound interest investmeut or loan can be computed with the formula 1-A-P. The end amount of a compound interest investment or loan can be computed with the formula A- P(1. The total percentage rate oe total retum of a simple interest investment or loan can be computed with the fonmala Laterest 100 Principal Use these foemulas to evaluate the aonts indicated below Chloe investa 15, 000 at a compound iaterest ate of 8 compounded monthly for 5 yesrs Deteine the total amot she will receive fros her ivestment at e end of 5 years Chloe will eceive a total of S the enl of 5 years Pevin dllars Detarine the istanet she will reoeive fe le vestnt athe end of5 years Choe will receiveS at he ted of 5 y Pview dllan D l p ag e ba tla nle otahe ond of5 years Cloes eet wil o tal Satentltiveo be inal ame the cnd of S your