Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

if its possible can you show me how to solve those 4 problems, kindly I want it to be sloved in written not using excel

if its possible can you show me how to solve those 4 problems, kindly I want it to be sloved in written not using excel or financial calculator if its possible

image text in transcribed
5. Consider a building with a very long economic life. Assume at the end of year 6 , NOI will be $80,000 as is expected to grow at a rate of 2 percent per year. You company's required rate of return is 12 percent. As part of your analysis, you must calculate the reversion value (REV) at the end of year 5 , which would be: (C) (A) $571,429 (B) $666,667 (C) $800,000 (D) $4,000,000 6. Consider a property with NOI of $72,000 and a debt coverage ratio of 1.2 applied to first year NOI. What would be the estimated monthly mortgage payment? (A) (A) $5,000 (B) $7,200 (C) $60,000 (D) $86,400 7. Consider the table above for a hypothetical income property that is under consideration for purchase with a $455.000 loan. Using the principles of mortgage equity capitalization, what is the estimated total property value (rounded to the nearest \$100)? (D) (A) $317,500 (B) $482,900 (C) $772,500 (D) $794,200 8. Using the information from the question above, what would be the equity dividend rate? (B) (A) 2.4 percent (B) 3.5 percent (C) $12,000 (D) $317.498 (E) Not enough information

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

8th Edition

0077261453, 978-0077261450

More Books

Students also viewed these Finance questions

Question

The Acts of the Second Council of Nicaea states opposition to

Answered: 1 week ago