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1. If you purchase a parcel of land today for $25,000, and you expect it to appreciate 10 percent per year in value, how much will your land be worth 10 years from now assuming annual compounding?<br> <br> <br>2. You are considering the purchase of a small income-producing property for $150,000 that is expected to produce the following net cash flows.<br>Year 1 Cash Flow $50,000<br>Year 2 Cash Flow $50,000
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FIN 467 Inspiring Minds/uophelp.com For more course tutorials visit www.uophelp.com
FIN 467 Inspiring Minds/uophelp.com FIN 467 Assignment 1 For more course tutorials visit www.uophelp.com 1. If you purchase a parcel of land today for $25,000, and you expect it to appreciate 10 percent per year in value, how much will your land be worth 10 years from now assuming annual compounding?
FIN 467 Inspiring Minds/uophelp.com FIN 467 Assignment 2 For more course tutorials visit www.uophelp.com B1. You are considering the purchase of a quadruplex apartment building. Effective gross income during the first year of operations is expected to be $33,600 ($700 per month per unit). First-year operating expenses are expected to be $13,440 (at 40 percent of EGI). Ignore capital expenditures. The purchase price of the quadruplex is $200,000. The acquisition will be financed with $60,000 in equity and a $140,000 standard fixed-rate mortgage. The interest rate on the debt financing is 8 percen
FIN 467 Inspiring Minds/uophelp.com For more course tutorials visit www.uophelp.com