Complete a Comprehensive Case Study Assignment Instructions

You are looking at the following projects and need to decide how best to deploy an inheritance you received of $150,000. Using the information below, determine the following ratios. You may use an excel spreadsheet to complete a comprehensive review of each of the properties below. Once you have completed the ratios, you are to determine which property would be the best option. Support your answer in a report using appropriate ratios and any other relevant factors you deem necessary.

• Gross Income Multiplier
• Net Income Multiplier
• Operating Ratio
• Break Even
• Debt Coverage Ratio
• Overall Cap Rate
• Equity Dividend Rate
• Cash on Cash Return
• Present Value of Cash Flows
• Net Present Value
• Profitability Index
• Investment Value
• Internal Rate of Return

Which option would you select given the following factors:

Annual Growth Rate: 4%

Required Rate of Return: 8%

Tax Rate: 15%

Equity Available: $150,000

Loan Rate: 4%

Holding Period: 12 Years

Annual Price Appreciation: 3.5% per year

*For this example, we will not consider the vacancy rate for now.

	Units	Sales Price	Avg Revenue Per Unit/Month	Annual Operating Expenses (Interest not included)
Duplex	2	$ 125,000.00	$ 615.00	$ 6,642.00
Duplex #2	2	$ 105,000.00	$ 575.00	$ 6,210.00
Fourplex	4	$ 245,000.00	$ 850.00	$ 22,160.00
Apartment Building #1	16	$ 600,000.00	$ 600.00	$ 69,840.00
Apartment Building #2	32	$ 1,200,000.00	$ 695.00	$ 162,096.00
Single Family Home #1	1	$ 189,000.00	$ 1,750.00	$ 11,010.00
Single Family Home #2	1	$ 215,000.00	$ 2,000.00	$ 13,400.00