Considering investing in residential triplex project

Assignment Help Financial Management
Reference no: EM131942920

Joe is considering investing in a residential triplex project that he believes will provide $14,980 per year for debt service. If the triplex costs $172,000 to build and he can get a mortgage with monthly payments for 25 years at 9% interest, how much will Joe’s equity investment be? Enter your answer to the nearest penny with no punctuation other than a decimal point. Do not enter commas or dollar signs.

Reference no: EM131942920

Questions Cloud

What is the total amount cashed out : The investor must convert the BTS coins back to ETH in order to cash out. What is the total amount cashed out?
Considering the market cycle peak that recently occurred : Considering the market cycle peak that recently occurred, the land has depreciated in value at an average annual rate of 8%.
About certainty equivalent of real estate investment : What do you know about the certainty equivalent (for the couple) of the real estate investment?
What is the most expensive property she can buy : Assume that Sarah can afford to make mortgage payments of $1,550 per month, what is the most expensive property she can buy?
Considering investing in residential triplex project : Joe is considering investing in a residential triplex project that he believes will provide $14,980 per year for debt service.
What is the irr of this investment opportunity : What is the investment value of this property’s cash inflows? What is the IRR of this investment opportunity?
An unincorporated association : An unincorporated association. Use marginal cost-benefit analysis to determine the Net benefit of proposed new robotics.
What is the fair market price of the bond : What is the fair market price of the bond? What is the appropriate yield-to-maturity or discount rate to value Global Motor’s bond issue?
The expected market return as represented : The expected market return as represented by the S&P 500 is 10% and the risk free rate is 5%.

Reviews

Write a Review

Financial Management Questions & Answers

  What must be the discount rate

A stock sells for $50. The next dividend will be $5 per share. what must be the discount rate?

  What should its stock be selling at

Firm A expects its dividend to grow at the following rates: Year 1 – 5%, Year 2 – 7%, What should its stock be selling at?

  How do you calculation earnings per share

How do you calculation Earnings Per Share (EPS)? Provide examples of actual companies and their respective EPSs per share?

  What business and its business pain

You will take this "business pain" and try to solve with material that I will provide. What Business and its business pain?

  Convertible bond owns in effect both bond-call option

The owner of a convertible bond owns, in effect, both a bond and a call option.

  Sample proportions distribution with normal distribution

About 74% of Freddie Mac-owned loans were refinanced in the second quarter of 2005 (USA Today, Lifeline, August 3, 2005), resulting in new mortgages carrying loan amounts at least 5% above the original mortgage balance. Determine if the sample size f..

  What is the portfolios beta

Mike Flannery holds the following portfolio: What is the portfolio's beta?

  Manufactures and sells ecological cotton fleece

Panda AB manufactures and sells ecological cotton fleece and is expected to have a free cash flow of 10 million SEK during next year. This cash flow is expected to grow by 4% from next year and onwards. What is the WACC before tax for Panda? What wou..

  How much does bill have in his account today

The account has an interest rate of 7.4 % p.a. How much does Bill have in his account today (that is, exactly one year after the initial deposit)?

  Would steve have been better off to invest

Was the agent being unethical in not showing Steve the potential impact of inflation on the policies' cash value?

  What is the market’s estimate of the 3 year treasury rate

what is the market’s estimate of the 3 year treasury rate 2 years from now?

  What is the expected NPV of the new project

A firm is considering a new project that has a cost of $1,000. Suppose, the CFO asked you to set up the decision tree to show its three most likely scenarios. The best case scenario happens with probability of 0.2, and produces three cash flows of $8..

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