Answer the Questions Below using the Following Information. We have the Option to Invest in a Rental Property with a Plan to Sell the Property at the End of 15 Years. The Cost to Purchase the Rental Property is $250,000, and requires a Cash Down Payment of 30% Due Now Today (NO Tax) The 70% Principal Balance will be paid to the Bank when we SELL the property at END (NO Tax) The Interest Only Mortgage Payments are $9,000 Per Year (TAX) County Property Tax Payments are $3,500 Per Year (TAX) Extensive Repairs are predicted in Year 8 at a Cost of $20,000 (TAX) Rental Income is $18,000 Per Year (TAX) It is estimated that the Rental Property can be sold in 15 Years for $300,000 (NO Tax) Depreciation Expense is a Deduction for Taxes at $10,000 per Year (250k/25 Yr Life =10k) (TAX) Assume Our Cost of Capital or Our Required Rate of Return is 10% Assume Our Tax Rate is 30%. Add or Subtract the Tax Cost or Benefit When Needed (TAX) Round All Answers to the NEAREST Dollar. QUESTIONS Input your Answers as a Number Only to the Nearest Dollar, No Commas, Decimals, or Dollar Signs. Show a Negative Number in Parens, Example = -150 = (150), Except Where it is Noted Otherwise. Compute the PV,Present Value of the Down Payment = Compute the PV of the Principal Due to be Paid at the End = Compute the PV of the Mortgage Interest Cost = Compute the PV of the Property Taxes Cost = Compute the PV of the Repairs Cost = Compute the PV of the Rental Income = Compute the PV of the Sale of Rental Property = Compute the PV, +/(-) of the Depreciation Benefit = Compute the NPV, Net Present Value, of the Rental Investment Opportunity = Which Rate is Greater on this Investment IRR or COC? = . Input your Answer as either IRR or COC, all Caps. How Do you know the Answer to the Question Above? = Input your Answer with one of the Following; IRR>0 or IRR<0 or coc>0 or COC<0 or npv>0 or NPV<0 is the irr for this investment greater than 10% ? = Input your answer with either yes or no. how do you know to question above? =Input one of following;>0 or IRR<0 or coc>0 or COC<0 or npv>0 or NPV<0 or irr>COC or COC>IRR Compute the Net Cash Flow for this Capital Project = Ignore Time Value of Money? Input your Answer as a Number Only to the Nearest Dollar, No Commas, Decimals, or Dollar Signs. Show a Negative Number in Parens, Example = -150 = (150). Is this a Good Investment ? = YES Input your answer with either YES or NO. How Do you know the Answer to the Question Above? = IRR>0 Input your Answer with One of the Following; IRR>0 or IRR<0 or coc>0 or COC<0 or npv>0 or NPV<0 or irr>COC or COC>IRR