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Please saw all excel formulas used in this and will this investment be worthwhile? Thank you! HOMEWORK 3-BEFORE TAX INVESTMENT ANALYSIS DUE ON NOVEMBER 20

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Please saw all excel formulas used in this and will this investment be worthwhile? Thank you!

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HOMEWORK 3-BEFORE TAX INVESTMENT ANALYSIS DUE ON NOVEMBER 20 AT 11:30PM. Use a 3-year holding period to decide whether or not this is a financially feasible investment. Compute the before-tax NPV and IRR. Comment on your final on your calculations as to whether the investment is worthwhile. Please do all your calculations, including NPV and IRR in Excel. You cannot do your calculations using a financial calculator and input your answers in Excel. BEFORE TAX INVESTMENT ANALYSIS OF AN APARTMENT BUILDING Use a 3 year holding period to decide whether or not this is a financially feasible investment. INPUTS NUMBER OF UNITS 5 RENT $900 RENT GROWTH 3.50% VACANCY RATE 6.00% FIXED EXPENSES $4,500.00 VARIABLE EXPENSES $6,000.00 RESERVES FOR REPLACEMENT $4,000.00 FIXED EXPENSE GROWTH 3.00% VARIABLE EXPENSE GROWTH 3.00% RESERVE ACCOUNT 3.50% APPRECIATION [TOTAL FOR HOLDING PERIOD 14.00% ACQUISITION PRICE $350,000 LOAN TO VALUE RATIO 75% LOAN AMOUNT $262,500 MORTGAGE INTEREST RATE 6.00% LOAN PAYMENT -- MONTHLY LOAN TERM 30 Years INVESTOR'S REQUIRED RATE OF RETURN 15.00% SELLING COST 5% HOLDING PERIOD - YEARS 3

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