Complete/answer each of the following problems providing an Excel spreadsheet with the solution to receive full credit. Do not provide just numbers but the formulas in Excel with the right answer. It is required to calculate the cash flows period per period (monthly), the loan amortization schedule payment per payment for the entire term of the loan even if cancelled early, etc.

Explain with your own word the calculations you have done step by step; do not just copy a solution you can find online because without formulas or explanation you will not receive any credit.

Calculation without formulas and functions in Excel will receive zero points. A message saying calculations were done in a financial calculator are not accepted

021 Grades - FINC-441 S X - D21 Chapter 13 PPT - FIN X Utilities o Mail- X C Complete/answer Eac X HW 03 Due 3-13-202 X G how to screenshot on x + E C File /Users/s Downloads/HW%2003%20Due%203-13-2022.pdf Update: = HW 03 Due 3-13-2022.pdf 2 / 4 2/4 | 100% + 10 : Problem 2 You are trying to estimate the value of a property that you are interested in buying. The subject property is located at 422 Rock Creek Road in a new suburb of a large metropolitan area. The property is like many others in the area, with three bedrooms, two baths, a living room, a den, a large kitchen, and a two-car garage. The residence has about 2,000 square feet of air-conditioned space and is of traditional design. The property is located on an interior lot with no potential flooding problems. The quality of construction appears to be about average for the market area. The property being purchased was built within the past two years. Three properties have been chosen as comparables and they also were constructed within the past two years. Comparable properties in the area have the following characteristics: Comparable comparable II Comparable III Address 123 Clay St. 301 Cherry Lane 119 Avenue X Sale price $85,000 $ 79,000 $75,000 Time of sale 6 months ago 7 months ago 13 months ago Design Modern Traditional Traditional Parking 2-car garage 2-car carport 1-car garage Location Corner lot Interior lot Interior lot Drainage Good Below average Good Bedrooms Four Three Two Baths Two Two Two Construction Average Average Below average You have come to some conclusions concerning what you believe the different attributes of the comparable properties are likely to be worth in the market area. Appreciation in house values in the area has been very low over the past eight months, and you think that any properties that have sold within that period would probably not require any adjustments for the time of sale. However, one of the comparable properties sold over a year ago, and you think it will require a $1,500 upward adjustment. Vou also believe that proporties in the area that are located near the cool coll for about 1200 loce 021 Grades - FINC-441 S X - D21 Chapter 13 PPT - FIN X S Utilities o Mail- C Complete/answer Eac X HW 03 Due 3-13-202 X G how to screenshot on x + File /Users/ Downloads/HW%2003%20Due%203-13-2022.pdf Update: = HW 03 Due 3-13-2022.pdf 3 / 4 100% + | 0 : comparable properties sold over a year ago, and you think it will require a $1,500 upward adjustment. You also believe that properties in the area that are located near the creek sell for about $1,200 less than other properties in the area because of a slower rate of runoff after heavy rains. Properties on corner lots generally sell for a premium of about $1,000. Houses with the fashionable modern design usually bring about $1,000 more than those that have traditional design characteristics. Because three- bedroom homes are considered desirable by buyers in the area, an additional fourth bedroom will generally only add about $1,200 in value to a property. However, properties that contain only two bedrooms are rather difficult to sell, and often bring $2,000 less than their three-bedroom counterparts when they are sold. Most homes in the area have a two-car garage, but when properties have a one-car garage, they usually sell for about $800 less. A two-car open carport generally reduces the value of the property by a similar amount, or $800. The inferior construction quality exhibited by comparable III should reduce its value by about $1,500. a) You plan to complete the sales comparison approach to value and assign an estimate of value to the subject property. Give specific reasons for your choice of value. b) A second approach using the cost method of valuation will also be used to estimate value. Comparing vacant lot sales in the market area indicates that the value of the lot the subject property is constructed on is $13,000. Air-conditioned space in the dwelling would cost about $36.00 per square foot to reproduce, and the garage would cost approximately $3,700 to reproduce. Complete the cost approach to value, assuming that, because the property being valued is relatively new, no depreciation of the structure is required. Expectations: a) Estimate the property values for the comparable properties and justify your adjustments. b) Estimate the property value using the cost method of valuation. Reference: see example explained on Exhibit 7-6, the cost approach is explained on page 207. 021 Grades - FINC-441 S X - D21 Chapter 13 PPT - FIN X Utilities o Mail- X C Complete/answer Eac X HW 03 Due 3-13-202 X G how to screenshot on x + E C File /Users/s Downloads/HW%2003%20Due%203-13-2022.pdf Update: = HW 03 Due 3-13-2022.pdf 2 / 4 2/4 | 100% + 10 : Problem 2 You are trying to estimate the value of a property that you are interested in buying. The subject property is located at 422 Rock Creek Road in a new suburb of a large metropolitan area. The property is like many others in the area, with three bedrooms, two baths, a living room, a den, a large kitchen, and a two-car garage. The residence has about 2,000 square feet of air-conditioned space and is of traditional design. The property is located on an interior lot with no potential flooding problems. The quality of construction appears to be about average for the market area. The property being purchased was built within the past two years. Three properties have been chosen as comparables and they also were constructed within the past two years. Comparable properties in the area have the following characteristics: Comparable comparable II Comparable III Address 123 Clay St. 301 Cherry Lane 119 Avenue X Sale price $85,000 $ 79,000 $75,000 Time of sale 6 months ago 7 months ago 13 months ago Design Modern Traditional Traditional Parking 2-car garage 2-car carport 1-car garage Location Corner lot Interior lot Interior lot Drainage Good Below average Good Bedrooms Four Three Two Baths Two Two Two Construction Average Average Below average You have come to some conclusions concerning what you believe the different attributes of the comparable properties are likely to be worth in the market area. Appreciation in house values in the area has been very low over the past eight months, and you think that any properties that have sold within that period would probably not require any adjustments for the time of sale. However, one of the comparable properties sold over a year ago, and you think it will require a $1,500 upward adjustment. Vou also believe that proporties in the area that are located near the cool coll for about 1200 loce 021 Grades - FINC-441 S X - D21 Chapter 13 PPT - FIN X S Utilities o Mail- C Complete/answer Eac X HW 03 Due 3-13-202 X G how to screenshot on x + File /Users/ Downloads/HW%2003%20Due%203-13-2022.pdf Update: = HW 03 Due 3-13-2022.pdf 3 / 4 100% + | 0 : comparable properties sold over a year ago, and you think it will require a $1,500 upward adjustment. You also believe that properties in the area that are located near the creek sell for about $1,200 less than other properties in the area because of a slower rate of runoff after heavy rains. Properties on corner lots generally sell for a premium of about $1,000. Houses with the fashionable modern design usually bring about $1,000 more than those that have traditional design characteristics. Because three- bedroom homes are considered desirable by buyers in the area, an additional fourth bedroom will generally only add about $1,200 in value to a property. However, properties that contain only two bedrooms are rather difficult to sell, and often bring $2,000 less than their three-bedroom counterparts when they are sold. Most homes in the area have a two-car garage, but when properties have a one-car garage, they usually sell for about $800 less. A two-car open carport generally reduces the value of the property by a similar amount, or $800. The inferior construction quality exhibited by comparable III should reduce its value by about $1,500. a) You plan to complete the sales comparison approach to value and assign an estimate of value to the subject property. Give specific reasons for your choice of value. b) A second approach using the cost method of valuation will also be used to estimate value. Comparing vacant lot sales in the market area indicates that the value of the lot the subject property is constructed on is $13,000. Air-conditioned space in the dwelling would cost about $36.00 per square foot to reproduce, and the garage would cost approximately $3,700 to reproduce. Complete the cost approach to value, assuming that, because the property being valued is relatively new, no depreciation of the structure is required. Expectations: a) Estimate the property values for the comparable properties and justify your adjustments. b) Estimate the property value using the cost method of valuation. Reference: see example explained on Exhibit 7-6, the cost approach is explained on page 207