e Escada Real Estate Investment Company purchases new c o mplex then sells the complexes to apartment management company the deg Investing two states and PAS Use appropriate factors from the ofrecents, and r s a state ee years. EREC provided) 1. EREC can purchase Harding Properties for $4.500.000 The complex is expected to produce net cash inflows of $360.000 $502,500 and $365,000 for the first second and third als afersion respective. The market value of the complex at the end of the third year is expected to be $5.175.000 2. HEIC can purchasim A ndre 3450 Thema inerted producent now 1300 $435,000, and $600,000 for the first second and rurd years of operation respectively. The market value of the complex at the end of the third year is expected to be $4.050.000 EREC has a desred rate of return of percent Required a-1. Calculate the net present value and the present value index for Harding Properties 3-2. Calculate the not present value and the present valides for Summit Apartments b. Which investment opportunity should be taken? For all requirements, round "Present Value to the nearest whole dollar amount. Round "Present value index to 2 decimal places Properties Apartments - Nepresenta 2 Pende TABLE 2 PRESENT VALUE OF AN ANNUITY OF $1 6% 0.961538 0.952381 0.943396 0.934579 0.925926 0.917431 0.909091 0.892857 0.877193 0.862069 0.833333 1.886095 1.859410 1.833393 1.808018 1.783255 1.759111 1,690051 1.646661 1.605232 1.527778 2.775091 2.723248 2.6730122.624316 2577097 2.531295 2.401831 2.321632 2.245890 2.106481 4 3.62989S 3.545951 3.465106 3.387211 3.312123 3.169855 3.037349 2.913712 2.2981812 .588735 4.451822 4.379477 4,212364 4.100197 3.992710 3.604776 3.433081 3.2742942 .960512 5.242137 5.075692 4,917324 4.766540 4.622880 4.485919 4,355261 4.111407 3.8A668 3.684736 2325510 6.002055 5.786323 S.582381 5.3092895 .206370 5032953 4.860419 4.563757 4.288305 4.058565 3.604592 6.463213 6209794 5.9712995 .746639 5.534819 5.334926 4.967640 4.638864 4.343591 3.837160 7.107822 6.801692 6.515232 6 24688B 5.995247 5.759024 5.328250 4.946372 4.606544 4.030967 B. 110996 7.260097 7.023582 6.710081 6.417658 6.144567 5,650223 5.216116 4,833227 4.192472 8.760477 7.885375 7.490674 7138954 6.905191 6.495051 5.937699 5.452733 5,028544 4.327060 8863252 3.383844 7.942685 9.385074 7.536078 7.160725 6.813692 6.194374 5.660292 5.197107 4.439217 13 9.985648 9.393573 B.652683 8.357651 7.903776 7.486904 7.103356 6.423548 5.842352 5.342334 4.532681 14 10.563123 9.898641 9.294914 8.745468 8.2442377.786150 7.366687 6.628168 6.002072 5.467529 4.610567 10.379659 15 9.712249 6.142168 11.118387 9.107914 5,575456 8.5594798.0606887.6060806.810864 4575473 11.652296 10.837270 10.105895 9.446649 3.851369 8.312558 7.823709 6.973986 6.765060 5.668497 4.729561 17 11.274066 10.477260 12.165669 9 .7632239 .121638 8.543631 8.021553 6.372859 7.119630 5.748704 4.774634 18 11.699587 12.659297 11.699587 10.327603 10.059037 9.371887 5,617848 8.755625 8.201412 10.327603 7.7496706,467420 4.812195 12.085321 11.158116 10.335595 3.3649207 9.603599 19 .365777 3.905115 13.133939 6550369 5.377455 4.843496 20 13.590326 12 462210 11,469921 10.594014 9.818147 9.128545 8.513564 7 469444 6,623131 4.869580 5.928841 e Escada Real Estate Investment Company purchases new c o mplex then sells the complexes to apartment management company the deg Investing two states and PAS Use appropriate factors from the ofrecents, and r s a state ee years. EREC provided) 1. EREC can purchase Harding Properties for $4.500.000 The complex is expected to produce net cash inflows of $360.000 $502,500 and $365,000 for the first second and third als afersion respective. The market value of the complex at the end of the third year is expected to be $5.175.000 2. HEIC can purchasim A ndre 3450 Thema inerted producent now 1300 $435,000, and $600,000 for the first second and rurd years of operation respectively. The market value of the complex at the end of the third year is expected to be $4.050.000 EREC has a desred rate of return of percent Required a-1. Calculate the net present value and the present value index for Harding Properties 3-2. Calculate the not present value and the present valides for Summit Apartments b. Which investment opportunity should be taken? For all requirements, round "Present Value to the nearest whole dollar amount. Round "Present value index to 2 decimal places Properties Apartments - Nepresenta 2 Pende TABLE 2 PRESENT VALUE OF AN ANNUITY OF $1 6% 0.961538 0.952381 0.943396 0.934579 0.925926 0.917431 0.909091 0.892857 0.877193 0.862069 0.833333 1.886095 1.859410 1.833393 1.808018 1.783255 1.759111 1,690051 1.646661 1.605232 1.527778 2.775091 2.723248 2.6730122.624316 2577097 2.531295 2.401831 2.321632 2.245890 2.106481 4 3.62989S 3.545951 3.465106 3.387211 3.312123 3.169855 3.037349 2.913712 2.2981812 .588735 4.451822 4.379477 4,212364 4.100197 3.992710 3.604776 3.433081 3.2742942 .960512 5.242137 5.075692 4,917324 4.766540 4.622880 4.485919 4,355261 4.111407 3.8A668 3.684736 2325510 6.002055 5.786323 S.582381 5.3092895 .206370 5032953 4.860419 4.563757 4.288305 4.058565 3.604592 6.463213 6209794 5.9712995 .746639 5.534819 5.334926 4.967640 4.638864 4.343591 3.837160 7.107822 6.801692 6.515232 6 24688B 5.995247 5.759024 5.328250 4.946372 4.606544 4.030967 B. 110996 7.260097 7.023582 6.710081 6.417658 6.144567 5,650223 5.216116 4,833227 4.192472 8.760477 7.885375 7.490674 7138954 6.905191 6.495051 5.937699 5.452733 5,028544 4.327060 8863252 3.383844 7.942685 9.385074 7.536078 7.160725 6.813692 6.194374 5.660292 5.197107 4.439217 13 9.985648 9.393573 B.652683 8.357651 7.903776 7.486904 7.103356 6.423548 5.842352 5.342334 4.532681 14 10.563123 9.898641 9.294914 8.745468 8.2442377.786150 7.366687 6.628168 6.002072 5.467529 4.610567 10.379659 15 9.712249 6.142168 11.118387 9.107914 5,575456 8.5594798.0606887.6060806.810864 4575473 11.652296 10.837270 10.105895 9.446649 3.851369 8.312558 7.823709 6.973986 6.765060 5.668497 4.729561 17 11.274066 10.477260 12.165669 9 .7632239 .121638 8.543631 8.021553 6.372859 7.119630 5.748704 4.774634 18 11.699587 12.659297 11.699587 10.327603 10.059037 9.371887 5,617848 8.755625 8.201412 10.327603 7.7496706,467420 4.812195 12.085321 11.158116 10.335595 3.3649207 9.603599 19 .365777 3.905115 13.133939 6550369 5.377455 4.843496 20 13.590326 12 462210 11,469921 10.594014 9.818147 9.128545 8.513564 7 469444 6,623131 4.869580 5.928841