1) Investment Cash Flows (15 marks): How much is your property going to cost?

a. Choose a property and estimate its cost (3 marks)

i. Hint: MLS is a great source for this.

b. Calculate other purchase expenses (3 marks)

i. Hint: there are many expenses when purchasing a property!

c. Salvage Value: Estimate how much you will be able to sell the property for in 5 years (3

marks)

i. Hint: This should be net of any selling expenses. Selling property has many costs

d. Other investments (3 marks)

i. Are other investments required to bring your AirBnB online?

ii. Hint: People want to be feel at home when traveling.

e. Present value of capital cost allowance (CCA) tax shield (3 marks)

f. Be sure to document your data sources