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please help me with number 6 to 1 5 questions. Thank you You are considering purchasing the Chung Apartment complex. The following information is available.
please help me with number to questions. Thank you
You are considering purchasing the Chung Apartment complex. The following information is available.
The purchase price is $ with land value of $
of the total structure cost is depreciable for years.
There are units with an initial rent of $ per unit per month. Rents are expected to increase after the
first year and each year thereafter.
Vacancy is expected to be of gross rent.
Operating expenses are expected to be of EGI.
The bank will loan of the purchase price at a contract fixed interest rate of for years, monthly payments.
This loan has a financing costs paid at closing.
The goingout cap rate is
Selling expenses will be of the selling price.
The holding period is two years.
Income tax rates The buyer will be in a marginal tax bracket for the first year but will move to a tax
bracket beginning the second year.
The buyer has a tax rate for depreciation recovery and a tax rate for capital gains.
The buyer has a required equity return of
What is the total taxes from operation in year two?
What is the expected selling price?
What is the initial equity investment?
What is the unpaid mortgage balance at the end of holding period?
What is the depreciation recovery depreciation holding period
What is the depreciation recovery tax amount?
What is the capital gain tax amount?
What is the beforetax equity reversion BTER
What is the aftertax equity reversion ATER
What is the total taxes on sale?
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