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FIN 467 Experience Tradition/uophelp.com

FIN 467 Experience Tradition/uophelp.com<br>

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FIN 467 Experience Tradition/uophelp.com

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  1. FIN 467 Experience Tradition/uophelp.com For more course tutorials visit www.uophelp.com

  2. For more course tutorials visit www.uophelp.com FIN 467 Assignment 1 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? 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. Year 1   Cash Flow $50,000 Year 2   Cash Flow $50,000 Year 3   Cash Flow $50,000 Year 4   Cash Flow $50,000

  3. For more course tutorials visit www.uophelp.com FIN 467 Assignment 2 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 percent and the loan term is 30 years. Assume, for simplicity, that payments will be made annually and that there are no up-front financing costs.

  4. FIN 467 Experience Tradition/uophelp.com For more course tutorials visit www.uophelp.com

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