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I need help with the attached homework, please. A & B and C & D are particularly confusing. Thanks! Providetatrecommendationtoftwhichtoftthetfollowingtpropertiestwouldtbetthetbettertchoice outtofteachtsettoftproperties.tBetsurettotprovidetthetcalculationstyoutusedtintyourtanalysis andtusetthetcalculationsttotsupporttyourtconclusions.tYoutmusttsubmittbothtantExceltfile withtdynamictcalculationstandtatWordtdocumenttwithtthetwrittentanswerstandtthe explanation.tUsetatseparatetworksheettforteachtpropertytpairingtandtlabelteachtworksheet. Alltthetanalysistmusttbetdonetintthetsametworkbook.

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I need help with the attached homework, please. A & B and C & D are particularly confusing. Thanks!

image text in transcribed Provide\ta\trecommendation\tof\twhich\tof\tthe\tfollowing\tproperties\twould\tbe\tthe\tbetter\tchoice out\tof\teach\tset\tof\tproperties.\tBe\tsure\tto\tprovide\tthe\tcalculations\tyou\tused\tin\tyour\tanalysis and\tuse\tthe\tcalculations\tto\tsupport\tyour\tconclusions.\tYou\tmust\tsubmit\tboth\tan\tExcel\tfile with\tdynamic\tcalculations\tand\ta\tWord\tdocument\twith\tthe\twritten\tanswers\tand\tthe explanation.\tUse\ta\tseparate\tworksheet\tfor\teach\tproperty\tpairing\tand\tlabel\teach\tworksheet. All\tthe\tanalysis\tmust\tbe\tdone\tin\tthe\tsame\tworkbook. 1) Property\tA\tor\tB Both\tproperties\thave\texisting\tloans\tthat\tyou\tare\table\tto\tassume.\tYou\tshould\tconsider\twhich property\thas\tthe\tbest\tfinancing\tterms\tand\twhether\tyou\tshould\tassume\tthe\tloan\tor\tsimply\tget\ta\tnew loan. Both\tproperties\thave\ta\tpurchase\tprice\tof\t$350,000\tand\ta\tloan\tto\tvalue\tratio\tof\t75%.\tA\tsecond mortgage\ton\teither\tproperty\twould\tbe\tneeded\tto\tmake\tup\tthe\tdifference\tin\tthe\tamount\tfinanced and\tcould\tbe\tobtained\tat\ta\trate\tof\t8%\tfor\ta\t15year\tterm.\tA\tnew\tloan\ton\tthe\teither\tproperty\twould have\ta\tterm\tof\t15years\tand\twould\tbe\tat\ta\trate\tof\t6.75%. Property\tA The\toriginal\tloan\tamount\twas\t$200,000\tat\ta\trate\tof\t5%.\tThe\tloan\twas\tobtained\t10\tyears\tago\tfor\ta term\tof\t25\tyears.\tTherefore,\tit\thas\t15\tyears\tleft\ton\tthe\tloan. Property\tB The\toriginal\tloan\tamount\twas\t$250,000\tat\ta\trate\tof\t5.25%.\tThe\tloan\twas\tobtained\t10\tyears\tago\tfor\ta term\tof\t25\tyears.\tTherefore,\tit\thas\t15\tyears\tleft\ton\tthe\tloan. 2) Property\tC\tor\tD You\thave\tthe\toption\tof\tbuying\tone\tof\ttwo\tproperties.\tThe\tmarket\trate\tis\t4.5%\ton\t30year\tloans\twith 80%\tloan\tto\tvalue\tratio. Property\tC You\tcan\tpurchase\tthis\tproperty\tfor\t$475,000\tand\tget\tthe\tseller\tto\tfinance\tit\tat\t3.75%\tfor\t30\tyears. Property\tD This\tproperty\thas\ta\tpurchase\tprice\tof\t$445,000,\tbut\tthere\tis\tno\tspecial\tfinancing\tavailable\tfrom\tthe seller\tof\tthis\tproperty. 3) Property\tE\tor\tF You\thave\tthe\toption\tof\tbuying\tone\tof\ttwo\tproperties.\tDetermine\tthe\tIRR\tfor\teach\tproperty\tand which\tproperty\tyou\twill\tselect\tif\tthe\treinvestment\trate\tis\t7%. Property\tE Initial Investment Year 1 2 3 4 5 Sale of Property $ (1,750,000) $ 124,568 $ 274,488 $ 256,793 $ 328,920 $ 358,392 $ 3,560,468 Property\tF Initial Investment Year 1 2 3 4 5 Sale of Property $ (1,550,000) $ 234,567 $ 345,789 $ 275,356 $ 354,682 $ 258,324 $ 2,575,668 4) Property\tG\tor\tH What\tis\tthe\tvalue\tof\teach\tproperty\tand\twhich\tone\twould\tyou\tpurchase\tbased\tupon\tthe\tassumptions given?\tBoth\thave\ta\trequired\trate\tof\treturn\t(yield)\tof\t6%.\tWhat\tif\tthe\trequired\trate\tof\treturn\twas 8%? Property\tG Year 1 2 3 4 5 $ 60,000 $ 85,000 $ 75,000 $ 74,000 $ 73,000 $ 1,250,000 1 2 3 4 5 $ 20,000 $ 35,000 $ 40,000 $ 35,000 $ 20,000 $ 1,500,000 Sale of Property Property\tH Year Sale of Property

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