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Hugo&Charles Property Investment plan to purchase a Retail Propery for $1,200,000 where 90% is allocated to building Financial strategy: LTV 80%, Interest rate 7%, maturity

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Hugo&Charles Property Investment plan to purchase a Retail Propery for $1,200,000 where 90% is allocated to building Financial strategy: LTV 80%, Interest rate 7%, maturity of loan 30 years Depreciated period: 27,5 years NOlend of year 1 $90,000 You can base the calculation of DS on monthly or yearly payments Assume a priceappreciation of 3%/yr a) Calculate BTCFO (from operation) year 1 2 Hugo&Charles plan to sell off the property end of year 3 b) Calculate BTCFs (from sale) E Assume a marginal tax rate of 25% on capital gain c) Calculate ATCEs (from sale) Hugo&Charles Property Investment plan to purchase a Retail Propery for $1,200,000 where 90% is allocated to building Financial strategy: LTV 80%, Interest rate 7%, maturity of loan 30 years Depreciated period: 27,5 years NOlend of year 1 $90,000 You can base the calculation of DS on monthly or yearly payments Assume a priceappreciation of 3%/yr a) Calculate BTCFO (from operation) year 1 2 Hugo&Charles plan to sell off the property end of year 3 b) Calculate BTCFs (from sale) E Assume a marginal tax rate of 25% on capital gain c) Calculate ATCEs (from sale)

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