Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - Evaluate the purchase of an existing 500 unit apartment complex for $20000000, the building is assumed to have a 20 year functional life. Treat the rents as being collected at the end of each year, along with associated variable and fixed costs. Assume rent controls will prohibit the rent from being raised over the life of the building. Assume that the underlying property reverts to the original owners at the end of twenty years, and that you will also be responsible for demolition and clean-up costs, to be incurred at the end of the building's life. Rentals are estimated at 450 units per year. Each unit will be rented for a cumulative monthly amount of $20000 per year. Cost per unit when rented $8000 per year. Fixed costs $3000000 per year for the building, other than the initial investment. Demolition/Clean up $4500000 after-tax. Depreciation is to be straight-line. Assume the project can be financed at 8% (before-tax) using debt. Tax Rate is 21%. Develop a pro forma income statement and compute the after-tax operating cash-flow (OCF). Having studied market downturns, you estimate that a worst case scenario would entail rental of about 70% of the apartments at 75% of the normal rent. Also estimate a maximum value for the project assuming the building can maintain a rental rate of 95%, at a 15% premium over the currently planned rent. Assume before tax required return at 8%. What is the NPV of the best case scenario?
Boehm Corporation has had stable earnings growth of 8% a year for the past 10 years, Calculate Boehm dividends per share
Company applies manufacturing overhead to production at the rate of $7 per direct labor hour. What is the direct labor budget for January through June
Grossman Products began operations in 2013. The following selected transactions occurred from September 2013 through March 2014. Grossman's fiscal year ends on December 31.
What is the expense recognized in profit or loss for 2021 under the fair value model and cost model, respectively
Prepare the revised equity section of its balance sheet after October 11 treasury stock purchase. (Amount to be deducted should be indicated with a minus sign.)
As of December 31, 2020, the prevailing rate of interest. What is the correct carrying value of the loans receivable as of December 31, 2022?
Direct labor costs P 4 per hour. One half of an hour is required to manufacture each unit of finished product. Determine the budgeted contribution margin
Does the culture of a firm get reflected in its appetite for risk or vice versa? Is there an audit plan to account for culture; is culture a control.
Briefly discuss Auction fraud and some of the tips for avoiding Auction fraud
The risk-free rate is 6%, the expected return on the first factor (r1) is 12%. If bi1 = 0.7 and bi2 = .09, what is Crisps required return
Work-in-process inventory was $12,000 at January 1 and $15,500at December 31. Compute cost of goods manufactured.
Quatro Co. issues bonds dated January 1, 2013, with a par value of $400,000. What is the amount of the premium on these bonds at issuance
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd