Calculate the mortgage for the property

Assignment Help Business Management
Reference no: EM131571728

A client of Mr. Richards wants to purchase a large commercial building. The building costs $20 million and he will make a down payment of 15% and finance the rest with a local bank. The bank terms are 10 year bullet loan with 30 year amortization at 4.5% interest. The building earns annual rent of $2,500,000 and it pays annual taxes of $1,000,000 per year. What will be the annual cash flow from the building? What will be the ROI on the investment? Given only this information, what are some of the obvious pieces missing that also need to be considered? What is your recommendation?

Excel: Using the basic TVM setup, calculate the mortgage for the property and calculate the cash flow, and ROI for this project.

Written: Briefly describe the analysis that you have performed, why how you calculated the cash flow, mortgage payment and ROI. Briefly give your recommendation and the list any missing risks that should be considered.

Reference no: EM131571728

Questions Cloud

Distribute five balls into three boxes : How many ways are there to distribute five balls into three boxes if each box must have at least one ball.
Case study of the basketball league : Suppose that a basketball league has 32 teams, split into two conferences of 16 teams each. Each conference is split into three divisions.
What is the net income : Lifeline, Inc., has sales of $602,000, costs of $256,000, depreciation expense of $62,500, interest expense of $29,500, and a tax rate of 40 percent.
Can you describe a typical day on the job : How long have you worked in the field of early childhood education?What educational background do you need to be considered for your position?
Calculate the mortgage for the property : Using the basic TVM setup, calculate the mortgage for the property and calculate the cash flow, and ROI for this project.
In how many different orders can inspector visit these sites : Suppose that a weapons inspector must inspect each of five different sites twice, visiting one site per day.
Provide an executive summary of the main points of the case : Provide an executive summary of the main points of the case. Identify and describe the various cultures and differences in those cultures within SAP's changing
A real example of when one of the listed business crimes : Explain why the conduct at issue could be viewed as constituting one of those specific business crimes.
What is the original cost of machinery : The annual depreciation expense of machinery was $5,000. The book value of machinery at the end of 2013 was $85,000. What is the original cost of machinery

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd