User Account

All Pages

What is the market value of this property

Assignment Help Accounting Basics
Reference no: EM133089321

Question - Your client is opening a new building this year. According to budget projections, annual NOI forecasts are as follows:

Year 1: $35,000

Year 2: $55,000

Year 3: $55,000

Year 4: $68,000

Year 5: $107,000

The required rate of return on investments of this type is 11%. The capitalization rate for similar 4-year-old buildings is 10%. The cost of sale is$53,500.

Required - What is the market value of this property using discounted cash flow analysis?

a. $785,986.33

b. $830,780.03

c. $922,165.64

d. $1,187,832

Reference no: EM133089321

Questions Cloud

Calculate the rate constant and half-life of the reaction : Determine the order of the reaction using integration and graphical method and Calculate the rate constant and half-life of the reaction
How do communicate their green efforts to the public : Discuss how businesses "Go Green". Pick a company that you feel is focused on going green and is publicly known for their efforts. Please consider these questio
Identify one or more experience goods : Identify one or more experience goods. Identify one or more search goods. How does the retailing of experience goods differ from the retailing of search goods?
Decision-making rm at the courtyard plaza : "That's just crazy," said Warren Calipari, the new FOM at the 400-room Courtyard Plaza hotel. "Of course we should hold all the rooms for transient. I was in Ho
What is the market value of this property : The capitalization rate for similar 4-year-old buildings is 10%. The cost of sale is $53,500. What is the market value of this property
Design a lockout plan if bargaining does not work : Design a lockout plan if bargaining does not work. Use research to describe the elements you would need to consider and how you, as a manager would prepare for
A boat for thureau by william mcdonough : 1) Why is the article entitled "A Boat for Thoreau"? How should this boat be?
What is the future value of an investment : What is the future value of an investment in which payments of $100 have been deposited each month for 18 years at an interest rate of 5%
Time and resource constrained projects : Time and Resource Constrained Projects. Projects are typically classified as time-constrained or resource-constrained.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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