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this all the the information given

A D H 1 2 You consider buying a investment property in Fayetteville and the expect the value of the property going up 5% every year. 3 You also consider to sell the property by year 2 and replace it with a comparable property so that no capital gain tax need to 4 be paid when you sell the house. Other information is given below. Income tax rate is 21%. 5 Assuming no property tax, no maintance cost and no other costs. 6 7 8 Fill out the cells as instructed and Make you investment decision. Why do you invest or not invest in this property? 9 10 Investment Property Budgeting 11 Purchase 12 Purchasing Price $200,000 13 20% Down Payment $40,000 14 Selling Price 2 years (24 Mo) later (Estimated) Must Calculate the selling price first! 15 8% selling Fee $0 16 Annual interest rate 3.500% 17 Loan term (in years) 18 Payments per year 12 19 Loan amount $160,000 20 monthly interest rate 0.29% 21 Monthly Payment $718.47 22 23 Rent out 24 Monthly Rent $1,000 25 5pts 30 H J K L M N 0 a. NPV 5pts A B C D E F 23 Rent out 24 Monthly Rent $1,000 25 26 Cost of Capital, i.e. Rate (APR) 8.00% 27 Monthly Cost of Capital 0.67% 28 29 Income Tax Rate taxable income of the year=(Rent minus Interest Paid) 21.00% 30 31 Calculate the Decision Variables below 32 5pts d. Should you invest? Why? 33 b. IRR (Monthly) 5pts 34 35 C. Calculate Cash Flow 5pts Period Mortgage Payment Interest Principle Remining Cash Flow Payment Payment Balance Buy/Sell Cash Flow from the Mortgage: (B+F) 36 37 0 38 1 39 2 40 3 41 4 42 5 Rent Cash Flow: Monthly Rent Taxable income CF: Income Tax (only (G,H,J) (H, C) at the year end) nul II d. Should you invest? Why? 11 Calculate the Decision Variables below 32 a. NPV 5b. IRR (Monthly) 14 15 C. Calculate Cash Flow Period Mortgage Payment interest Payment Principle Payment Remining Balance huy/Sell Cash Flow Chow on the Bent Cash Flow Monthly Rent The income Income Tax only pL at the year end) 36 37 30 39 40 1 2 3 41 IN 5 5 7 44 45 46 7 10 E33 * 2 4 5 6 7 You consider buying a investment property in Fayetteville and the expect the value of the property going up 5X every year. You also consider to sell the property by year 2 and replace it with a comparable property so that no capital gain tax need to be paid when you sell the house. Other Information is given below. Income tax rate is 21% Assuming no property tax, no maintance cost and no other costs. Fill out the cells as instructed and Make you investment decision. Why do you invest or not invest in this property? $200,000 $40,000 Must Calculate the selling price first! 5pts SO 10 Investment Property Budgeting 11 Purchase 12 Purchasing Price 13 20Down Payment 14 Selling Price 2 years (24 Mo) later (Estimate 15 8% selling Fee 16 Annual interest rate 17 Loan term (in years) 18 Payments per year 19 Loan amount 20 monthly interest rate 21 Monthly Payment 22 23 Rent out 24 Monthly Rent 25 26 Cost of Capital, Le Rate (APR) 27 Monthly Cost of Capital 28 29 Income Tax Rate taxable income of the yearRent minus Interest Paid 3 500% 30 12 $160,000 0.29% -$718.47 $1.000 8.00% 0.67% 21.00% hlem A D H 1 2 You consider buying a investment property in Fayetteville and the expect the value of the property going up 5% every year. 3 You also consider to sell the property by year 2 and replace it with a comparable property so that no capital gain tax need to 4 be paid when you sell the house. Other information is given below. Income tax rate is 21%. 5 Assuming no property tax, no maintance cost and no other costs. 6 7 8 Fill out the cells as instructed and Make you investment decision. Why do you invest or not invest in this property? 9 10 Investment Property Budgeting 11 Purchase 12 Purchasing Price $200,000 13 20% Down Payment $40,000 14 Selling Price 2 years (24 Mo) later (Estimated) Must Calculate the selling price first! 15 8% selling Fee $0 16 Annual interest rate 3.500% 17 Loan term (in years) 18 Payments per year 12 19 Loan amount $160,000 20 monthly interest rate 0.29% 21 Monthly Payment $718.47 22 23 Rent out 24 Monthly Rent $1,000 25 5pts 30 H J K L M N 0 a. NPV 5pts A B C D E F 23 Rent out 24 Monthly Rent $1,000 25 26 Cost of Capital, i.e. Rate (APR) 8.00% 27 Monthly Cost of Capital 0.67% 28 29 Income Tax Rate taxable income of the year=(Rent minus Interest Paid) 21.00% 30 31 Calculate the Decision Variables below 32 5pts d. Should you invest? Why? 33 b. IRR (Monthly) 5pts 34 35 C. Calculate Cash Flow 5pts Period Mortgage Payment Interest Principle Remining Cash Flow Payment Payment Balance Buy/Sell Cash Flow from the Mortgage: (B+F) 36 37 0 38 1 39 2 40 3 41 4 42 5 Rent Cash Flow: Monthly Rent Taxable income CF: Income Tax (only (G,H,J) (H, C) at the year end) nul II d. Should you invest? Why? 11 Calculate the Decision Variables below 32 a. NPV 5b. IRR (Monthly) 14 15 C. Calculate Cash Flow Period Mortgage Payment interest Payment Principle Payment Remining Balance huy/Sell Cash Flow Chow on the Bent Cash Flow Monthly Rent The income Income Tax only pL at the year end) 36 37 30 39 40 1 2 3 41 IN 5 5 7 44 45 46 7 10 E33 * 2 4 5 6 7 You consider buying a investment property in Fayetteville and the expect the value of the property going up 5X every year. You also consider to sell the property by year 2 and replace it with a comparable property so that no capital gain tax need to be paid when you sell the house. Other Information is given below. Income tax rate is 21% Assuming no property tax, no maintance cost and no other costs. Fill out the cells as instructed and Make you investment decision. Why do you invest or not invest in this property? $200,000 $40,000 Must Calculate the selling price first! 5pts SO 10 Investment Property Budgeting 11 Purchase 12 Purchasing Price 13 20Down Payment 14 Selling Price 2 years (24 Mo) later (Estimate 15 8% selling Fee 16 Annual interest rate 17 Loan term (in years) 18 Payments per year 19 Loan amount 20 monthly interest rate 21 Monthly Payment 22 23 Rent out 24 Monthly Rent 25 26 Cost of Capital, Le Rate (APR) 27 Monthly Cost of Capital 28 29 Income Tax Rate taxable income of the yearRent minus Interest Paid 3 500% 30 12 $160,000 0.29% -$718.47 $1.000 8.00% 0.67% 21.00% hlem