Question
A real estate company is attempting to market three real estate investments. The forecasted cash flows and acquisition costs (at time zero) are shown below.
A real estate company is attempting to market three real estate investments. The forecasted cash flows and acquisition costs (at time zero) are shown below.
Year A B C
1 0 P3,500,000 P15,000,000
2 0 P5,000,000 -P3,500,000
3 P18,000,000 P12,500,000 P12,000,000
Costs P10,000,000 P14,500,000 P14,500,000
What is the present value (rounded to the nearest peso) at j1 = 12% on Investment A using
single rates?
What is the present value (rounded to the nearest peso) at j1 = 8% on
Investment B using single rates?
What is the present value (rounded to the nearest peso) at j1 = 10% on
Investment C using single rates?
If the reinvestment rate is j1 = 3.5%, what is the present value (rounded to
the nearest peso) at j1 = 6% on Investment A using single rates?
If the reinvestment rate is j1 = 12%, what is the present value (rounded to
the nearest peso) at j1 = 9% on Investment B using single rates?
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