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please hurry! this is all what out professor gave us, can you please calculate with the given information ? Question 8 50 pts Assume that
please hurry!
this is all what out professor gave us, can you please calculate with the given information ?
Question 8 50 pts Assume that John also bought a different rental property shortly after the Highway 100 apartment purchase. This property is expected to generate a Year 1 cash flow of $12,000 and he paid $200,000 at closing (borrowing 50%). Using this information, calculate the following: What is John's cash flow for Year 8? Assume a 3% escalator per year and that he sells the property for 250,000 at the end of year 10. (10 points) What is the total present value of the cash flows assuming a 5% discount rate. (10 points) The net present value of the cash flows after the year 10 sale (10 points). John's internal rate of return on the deal. (10 points) Assume all other facts are the same - what is John's IRR if he had sold in year 5 instead of in year 10 (sales price still $250,000)? (10 points) Step by Step Solution
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