What rate of return will the investor obtain

Assignment Help Project Management

Reference no: EM133348937

Question: Donegal County Council have also engaged your construction management services to advise on another property they own which is to be purchased by a private investor for €1,000,000 and is expected to increase in value to €1,500,000 in four years. During this period it can be rented to a tenant for €55,000 per year. Annual costs are €18,000. What rate of return will the investor obtain on his investment within this time period?

PW costs - PW receipts = 0

Which can be expressed as follows for our problem:

1,000,000 - [(55,000 - 18,000) (P/A) + 1,500,000(P/F)] = 0

Reference no: EM133348937

Questions Cloud

Regarding technological communication development : Which of the following statements are true regarding technological communication development over the past 100 years?

Write a long term recommendations give to town leadership : Write at least 2 short and 2 long term recommendations you would give to the town leadership?

Clinical psychologists : Jay and Mary are clinical psychologists. They each work with patients who have schizophrenia. Both Jay and Mary treat their patients without the use of drugs.

Describe how the successful execution of strategies : Impact to stakeholder groups: Describe how the successful execution of strategies will impact various stakeholder groups.

What rate of return will the investor obtain : What rate of return will the investor obtain on his investment within this time period - advise on another property they own which

Conduct a case study of organizations before covid : Conduct a case study of organizations before COVID; in which you apply the six characteristics that measure the current state of Securities Management

A brief summary of the projects mitigation strategies : A brief summary of the projects mitigation strategies (accept, minimize, share, transfer) for each of the three risks you discussed

Engage in special activity-activities with brave community : Engage in a special activity or activities with the Brave Community. Spend approximately 60 hours on this assignment.

Provides guidelines for ethical behavior by project : The PMI "Code of Ethics and Professional Conduct" provides guidelines for ethical behavior by project management practitioners. It describes four main values

User Account

All Pages