2.2: ON saatoeicond sook A Mama Tales Ch Data Clear Cari - AA- BU SHAS E IN horn 174 Ope 1. Apply.capital budgeting to property Investment (a) Develco proforma cash flows for property investment project D) Compute NPV IRA s) Develop Problem Solving and cal Thinking Skills 02 11) buy house in all Cash Or Mortgage project periode 15 years 22property value Rent to Price Ratio 10% $200,000 520.000 Inational property 3 down payment 2.DON $50,000 7) property at the end of the year 144) 10yr mortgage 3.9% SOM 15 case 1: Investment a LR NI IRR ONE 19 NO prywa 03 04 as 06 OR 08 09 20 0000 50.000 1 L. 200.000 20.000 000 TOOOOR 20.000 30.000 20.000 KOOOOK OOOO 20.00 20.000 20.000 22 20.000 20.000 20.000 10 20.000 2001 Us to compare Cash ? with a chothe return of the property owned and now by not here to More! Ardura comer Care este con How bout de 3.3. you findine 20 ce OLO TO 012 013 22.XX KOCK 04 015 VT KOODI 20.000 20.000 3000K 0000 20.000 OOOOX 20.000 220.000 DID KOOS 300.000.000 24 2,772 10.400 0 2124 OOOOK OOK 1492 OOOOK OCCE BESTE HE 2. US 20 20 ODE 22256 LUD w rental condupled for segW Care Owner OOK 300.000 . obowe NTC BEN 0 city HAAL w B Dom O FUTA THER BL.Apply capital Budgeting to property Investment N Dewi proforma calow for property Investment project ) Compute NPV RR ce) avelop Problem Solving and Critical Thinking 29 111) buy house in all Cash Or Mortgage project period 15 years 5) Rent-to-Price Ratio 10% 12 property value $20,000 $200,000 6Inflation, rental property value appreciation 2.00% 3) down payment $50,000 14 10-ye mortgage at 3.5% 7) property at the end of 15th year $18.036) annual rental income 16 case 1: Investment 12 1 NPV IRA CHO C1 CH2 CF) CH4 CFS 017 08 CF9 010 11 operty we are 120 XXX DOO 30,000 1964 1.954 1.964 1.64 1,964 OOKIO LOOK OOK XOCOK KOOK 20,000 21 200,000 20.000 20.000 20.000 20,000 20,000 20,000 20,000 20.000 20,000 20,000 20,000 22 EL OM Use to compare Cathy Mortorge? With cash buying all the return of the property from rentals earned and chipped away by more here Cash better than Morto! 0714 CFS XCO 20.000 20.000 DODGE 20,000 10000 000 20,000 220,000 At required retur ind NPV comaru Chertog mutual el conciennent with IRRY How what required at required mess your finding Wety a MODO MOX KOOGIE 50.000 200.000 3.m KOOK 2,364 20,000 20,400 20.00 XOCOK KOKIO 21.224 21,649 22,082 LA OOOO 22,944 KOOKOU 23,00 22,533 10 2417 26 24,180 2T 165 100004 XOCOK 2.5 295.16 Now assume rental grows with Inflation does your condusion change Use your numbers to find support for Rental has a hedge against Inflation", caso ownship 32 16/08 XIDOOS X0000 BRON 50.000 -200.000 18036 0 IROS 0 103 0 180 38.0361806 1806 0 o 0 0 0 0 0 0 200,000 0 200.000 0 OM OS (ORUN You buy the houle just for wife. What's your conclusion now based on IRR explain Think about are with lower Rent to Price Ratio, such as San Fransisco, NYC Try and 3x discuss your finding Sumarte any additional insights you feel you figured from this are 49 42 48 49 50 51 13 33 2.2: ON saatoeicond sook A Mama Tales Ch Data Clear Cari - AA- BU SHAS E IN horn 174 Ope 1. Apply.capital budgeting to property Investment (a) Develco proforma cash flows for property investment project D) Compute NPV IRA s) Develop Problem Solving and cal Thinking Skills 02 11) buy house in all Cash Or Mortgage project periode 15 years 22property value Rent to Price Ratio 10% $200,000 520.000 Inational property 3 down payment 2.DON $50,000 7) property at the end of the year 144) 10yr mortgage 3.9% SOM 15 case 1: Investment a LR NI IRR ONE 19 NO prywa 03 04 as 06 OR 08 09 20 0000 50.000 1 L. 200.000 20.000 000 TOOOOR 20.000 30.000 20.000 KOOOOK OOOO 20.00 20.000 20.000 22 20.000 20.000 20.000 10 20.000 2001 Us to compare Cash ? with a chothe return of the property owned and now by not here to More! Ardura comer Care este con How bout de 3.3. you findine 20 ce OLO TO 012 013 22.XX KOCK 04 015 VT KOODI 20.000 20.000 3000K 0000 20.000 OOOOX 20.000 220.000 DID KOOS 300.000.000 24 2,772 10.400 0 2124 OOOOK OOK 1492 OOOOK OCCE BESTE HE 2. US 20 20 ODE 22256 LUD w rental condupled for segW Care Owner OOK 300.000 . obowe NTC BEN 0 city HAAL w B Dom O FUTA THER BL.Apply capital Budgeting to property Investment N Dewi proforma calow for property Investment project ) Compute NPV RR ce) avelop Problem Solving and Critical Thinking 29 111) buy house in all Cash Or Mortgage project period 15 years 5) Rent-to-Price Ratio 10% 12 property value $20,000 $200,000 6Inflation, rental property value appreciation 2.00% 3) down payment $50,000 14 10-ye mortgage at 3.5% 7) property at the end of 15th year $18.036) annual rental income 16 case 1: Investment 12 1 NPV IRA CHO C1 CH2 CF) CH4 CFS 017 08 CF9 010 11 operty we are 120 XXX DOO 30,000 1964 1.954 1.964 1.64 1,964 OOKIO LOOK OOK XOCOK KOOK 20,000 21 200,000 20.000 20.000 20.000 20,000 20,000 20,000 20,000 20.000 20,000 20,000 20,000 22 EL OM Use to compare Cathy Mortorge? With cash buying all the return of the property from rentals earned and chipped away by more here Cash better than Morto! 0714 CFS XCO 20.000 20.000 DODGE 20,000 10000 000 20,000 220,000 At required retur ind NPV comaru Chertog mutual el conciennent with IRRY How what required at required mess your finding Wety a MODO MOX KOOGIE 50.000 200.000 3.m KOOK 2,364 20,000 20,400 20.00 XOCOK KOKIO 21.224 21,649 22,082 LA OOOO 22,944 KOOKOU 23,00 22,533 10 2417 26 24,180 2T 165 100004 XOCOK 2.5 295.16 Now assume rental grows with Inflation does your condusion change Use your numbers to find support for Rental has a hedge against Inflation", caso ownship 32 16/08 XIDOOS X0000 BRON 50.000 -200.000 18036 0 IROS 0 103 0 180 38.0361806 1806 0 o 0 0 0 0 0 0 200,000 0 200.000 0 OM OS (ORUN You buy the houle just for wife. What's your conclusion now based on IRR explain Think about are with lower Rent to Price Ratio, such as San Fransisco, NYC Try and 3x discuss your finding Sumarte any additional insights you feel you figured from this are 49 42 48 49 50 51 13 33