12-30
Cash Receipts Frequency and Present-Value Consequences Assume that you are about to sell property (a vacant parcel of real estate) you own but otherwise have no use for. The net-of-salescommission selling price for the property is $500,000. You are willing to finance this transaction over a 20-year period and have told the buyer that you expect a 12% pretax return on the transaction.
The buyer has asked you for a payment schedule under several alternatives.
Required
1. What will be your periodic cash receipt, to earn a 12% return, if payments are received from the purchaser:
a. At the end of each week?
b. At the end of each month?
c. At the end of each quarter?
d. At the end of each year?
2. What general conclusion can you draw based on the calculations in requirement 1?
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12-3. Assume that you are about to sell property (a vacant parcel of real estate) you...
12-3. Assume that you are about to sell property (a vacant
parcel of real estate) you own but otherwise have no use for. The
net-of-sales-commission selling price for the property is $470,000.
You are willing to finance this transaction over a 16-year period
and have told the buyer that you expect a 15% pretax return on the
transaction. The buyer has asked you for a payment schedule under
several alternatives.
Required:
1. What will be your periodic cash receipt, to...
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PV=
FV=
PMT=
N=
I/Y=
IN=
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12-3. Assume that you are about to sell property (a vacant
parcel of real estate) you own but otherwise have no use for. The
net-of-sales-commission selling price for the property is $470,000.
You are willing to finance this transaction over a 16-year period
and have told the buyer that you expect a 15% pretax return on the
transaction. The buyer has asked you for a payment schedule under
several alternatives.
Required:
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use excel, do it like this
PV=
FV=
PMT=
N=
I/Y=
IN=
1. A Real Estate Investor is considering the purchase of an apartment building. The investor estimates the current value at $400,000. If the market price appreciates at 8 percent annually what will be the price of the unit at the end of 5 years? 2. Suppose you were selling your home. A buyer has offered to pay you $115,000 now and another $85,000 in 2 years. What is...
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1) What is the incremental annual after-tax Cash Flow
earned from owning leasing ?
2) Assuming at the end of year 10 the buyer of the building
determinate they could landlord, attract a new tenant, lease the
building and obtain the following NOI:
Rent
250,000
Operating Expenses
75,000
Real Estate taxes
40,000
NOI 135,000
What is the implied cap rate if the building is sold for
$2,250,000?
to decide if the new office leasing are estimated in the s will...
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