User Account

All Pages

What is the value of this property today

Assignment Help Finance Basics
Reference no: EM133117113

Suppose you are considering the acquisition of an income producing property. The building is currently leased for the next 5 years with annual (year-end) cashflows of $1,500,000. At the end of the current lease, you expect rents to increase to $1,800,000 (annually) for the foreseeable future. You anticipate selling the property ten years from today, at an expected multiple of 10.0 times the prevailing market rent. Market rates (OCC) are currently 5%, but given the uncertainty surrounding future rental rates a 3% risk premium must be added to inter-lease rates. What is the value of this property (to you) today?

Reference no: EM133117113

Questions Cloud

Make a wacc calculation tool : Your company's required return on debt is 6%, its tax rate is 30%, and its required return on equity is 10%. The company has 20 billion dollars of debt, and boo
Calculate the present value of the payments : Jack will receive $2000 every two years from a fund. He will receive 10 payments in total with the ?rst payment being paid 5 years from new. Given that the nomi
Assigning bond ratings : What factors do rating agencies consider when assigning bond ratings?
Make equal annual payments : You are celebrating your 40" birthday today. You want to start saving for your anticipated retirement at age 65. You want to be able to withdraw $100,000 f
What is the value of this property today : Suppose you are considering the acquisition of an income producing property. The building is currently leased for the next 5 years with annual (year-end) cashfl
Annual opportunity cost : What will a deposit of $4,500 at 7% annual interest is worth if left in the bank for nine years?
What is the equity cost of capital : You expect a sustainable growth rate of 16.67% for the dividends and earnings of the company. What is the equity cost of capital?
How does the volcker rule of the dodd-frank act : How does the Volcker Rule of the Dodd-Frank Act of 2010 restrict banking entities and nonfinancial companies supervised by the Federal Reserve?
Mathematics for Computing Assignment : Show the hexadecimal representation of each character in the selected sentence - show the results for all the converted binary sequence

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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