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If I had $10,000,000 of funds (equity from issued capital) to invest. I have identified some investment options that you feel are worth investigating further.

If I had $10,000,000 of funds (equity from issued capital) to invest.

I have identified some investment options that you feel are worth investigating further.

These options are as follows:

Option 1 Subdivision of commercial land

$7,000,000 total investment cost

Expected sales value on completion $9,500,000

2 year project

$2,000,000 up front and the balance evenly spent over the remaining months

Bank will fund up to 70% of all upfront and construction costs.

Interest rate on debt 7.5%, paid monthly

Tax rate 28%

Option 2 Commercial investment property

$5,000,000 purchase price

7.5% yield on net rents

Bank will fund a maximum of 60% of purchase price

Interest rate 6.5%

P&I over a 15 year term until loan is at 50% LVR

5 yearly rent reviews, expect rent increase of 10% per rent review

Expect yield to remain at 7.5% into the future

Consider a sale at the end of year 10

Tax rate 28%

Option 3 Townhouse development

$8,000,000 investment cost

3 year project

$1,000,000 up front and the balance evenly over the term of the project

Bank will fund up to 65% of construction costs.

Revenue on completion of $12,500,000

Interest can be capitalised to the loan

Interest rate 6.5%

Tax rate 28%

Option 4 Business acquisition

EBIT per financial information supplied is $850,000

Depreciation is $50,000

Financial information does not include rent on a factory owned by the

vendor. Market rent is $300,000

Average capital expenditure is $100,000

The business can be brought for an Earnings Multiple of 5 times future

maintainable earnings (FME)

Working capital required is stock $400,000, Debtors $600,000, Accounts

payable $350,000

The bank will provide debt at 1.5 times EBITDA rounded to the nearest one

hundred thousand dollars

Interest rate is 7.5% interest only

I need to determine the investment options and which investments are the best option or options to invest in.

Could you help calculate the IRR, PV, FV, WACC, and NPV. if you are using Excel do share formula you are using

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