Question
Capital Yield - $770(Rent is compared with other properties in the same area and features)(rent/week) x 52 = $40,040 (annual rent) $40,040 $1,555,626(Price of Property)
Capital Yield - $770(Rent is compared with other properties in the same area and features)(rent/week) x 52 = $40,040 (annual rent)
$40,040 $1,555,626(Price of Property) = 2.57% +3.9%(GDP growth) = 6.47%(Discount Rate)
-Management fees = 6%
Property 2
Capital Yield - $750(Rent is compared with other properties in the same area and features)(rent/week) x 52 = $39,000 (annual rent)
$39,000 $1,084,900(Price of Property) = 3.59% + 3.9%(GDP growth) = 7.49%(Discount Rate)
-Management fees = 6%
PLEASE find discounted cash flow for 6 years, IRR and NPV
Step by Step Solution
3.51 Rating (161 Votes )
There are 3 Steps involved in it
Step: 1
To calculate the discounted cash flow IRR and NPV for both properties over a 6year period we need to estimate the net cash flow each year Net cash flo...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Real Estate Finance and Investments
Authors: William Brueggeman, Jeffrey Fisher
14th edition
73377333, 73377339, 978-0073377339
