all parts please

Rent versus Own Analysis This project requires you to compare renting versus owning a home. Assume the home can be rented for $15,000 for the first year, with an annual 2 percent rental growth rate. Alternatively, it can purchased for $160,000 with a $35,000 down payment and financed with a fully amortizing mortgage loan of $125,000 at 2 percent interest for 30 years. Other costs associated with owning include maintenance costs of $450, insurance costs of $350, and property taxes of 3.5 percent of the purchase price. Assume the income tax rate is 21 percent. Growth rates for expenses including insurance, maintenance, and property taxes, are equal to 2.5 percent per year. The property value will grow at a rate of a constant 1.8 percent per year. After five years, the property will be sold. Selling expenses of 6 percent would have to be paid at that time. Be sure to show your work in Excel. In other words, do not simply type values into the boxes, but reference prior cells when calculating results. In your report, identify and explain the cash flow in each year, for owning relative to renting. If an annual after tax return of 20 percent is available on an investment of comparable risk, which is the better option, owning or renting? Part 1: Property and Loan Information A) Fill in the table for the property information. (8 points) B) Fill in the table for the loan information. Use the Excel PMT function to calculate the monthly payment. (8 points) Part 2: Loan Schedule C) Fill in the table for the loan schedule over five years. Make sure you reference cells (e.g., monthly payment and periodic rate). (8 points) D) Fill in the table for the yearly summary of the loan schedule. (8 points) E) Fill in the table for the yearly property data. Apply the FV formula using the correct growth rates. (8 points) Part 3: Cash Flow Analysis F) Fill in the table for the before tax cash flows from owning. (8 points) G) Fill in the table for tax deductions. (8 points) H) Fill in the table for net cash flows from owning, (8 points) Fill the table for the cash flows from selling the home in year 5. (8 points) 3) Fill in the table for the net cash flows. Assume no taxes are due on the benefit from sale. Calculate the internal rate of return (IRR) using the Excel function. 18 points) Part 1) Propery and Loan Information A) Property Information Purchase price Initial Yearly Rent Rental growth rate Property growth rate Insurance Maintenance Expenses growth rate Income tax rate Property tax Selling expenses 3 B) Loan Information Down payment Loan amount Loan-to-value ratio Interest rate Loan term (in years) Payments (per year) Periodic (monthly) rate Number of periods Monthly loan Payment Part 2) Loan Schedule and Property Data G Loan Schedule 15 years) Month Beginning loan balance Monthly payment Deriodic rate Interest Amortization Ending loan balance 5 0 7 10 11 12 1 14 15 16 17 19 LIFE 33 Dj Yearly Summary of loan Schedule 36 57 3B 30 10 11 12 End of year Payment Balance Interest Principal Yearly Property Data Year Property value 17 Bents art 3) Cash Flow Analysis Before Tax Cash Flows Owning Year Property taxes Insurance Maintenance Principal Interest Cash outflows before taxes Tax Deductions Owning Year Property taxes Interest Total tax deductions Tax Savines D E 3) Net Cash Flows-Owning 1 3 Year Cash outflows before taxes Tax savings After tax cost of owning Cost of renting After tax cash flows Own vs. Rent Cash Flows from selling 3 Year Property value Selling costs Loan balance Benefit from sale Net Cash Flows and IRR Years Cash flow Rent versus Own Analysis This project requires you to compare renting versus owning a home. Assume the home can be rented for $15,000 for the first year, with an annual 2 percent rental growth rate. Alternatively, it can purchased for $160,000 with a $35,000 down payment and financed with a fully amortizing mortgage loan of $125,000 at 2 percent interest for 30 years. Other costs associated with owning include maintenance costs of $450, insurance costs of $350, and property taxes of 3.5 percent of the purchase price. Assume the income tax rate is 21 percent. Growth rates for expenses including insurance, maintenance, and property taxes, are equal to 2.5 percent per year. The property value will grow at a rate of a constant 1.8 percent per year. After five years, the property will be sold. Selling expenses of 6 percent would have to be paid at that time. Be sure to show your work in Excel. In other words, do not simply type values into the boxes, but reference prior cells when calculating results. In your report, identify and explain the cash flow in each year, for owning relative to renting. If an annual after tax return of 20 percent is available on an investment of comparable risk, which is the better option, owning or renting? Part 1: Property and Loan Information A) Fill in the table for the property information. (8 points) B) Fill in the table for the loan information. Use the Excel PMT function to calculate the monthly payment. (8 points) Part 2: Loan Schedule Fill in the table for the loan schedule over five years. Make sure you reference cells (e.g., monthly payment and periodic rate). (8 points) D) Fill in the table for the yearly summary of the loan schedule. (8 points) E) Fill in the table for the yearly property data. Apply the FV formula using the correct growth rates. (8 points) Part 3: Cash Flow Analysis F) Fill in the table for the before tax cash flows from owning. (8 points) G) Fill in the table for tax deductions. (8 points) H) Fill in the table for net cash flows from owning. (8 points) D Fill the table for the cash flows from selling the home in year 5. (8 points) J) Fill in the table for the net cash flows. Assume no taxes are due on the benefit from sale. Calculate the internal rate of return (IRR) using the Excel function. (8 points)