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Please show all excel calculations necessary. Thank you! 6. You own a building that a local business wants to rent for the next 10 years.

Please show all excel calculations necessary. Thank you!

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6. You own a building that a local business wants to rent for the next 10 years. The business owner has offered to pay $50,000 today or pay $8,700 at the end of each of next 10 years. If your required rate of return is 12%, which payment schedule should you accept? 7. How much would you pay to participate in a real estate project that pays nothing for the rst 10 years and $3,000 for the following 10 years if you can earn 12% return on other investments of similar risk? 8. Calculate the IRR and NPV for the following cash ows. Assume a 10% discount rate Cash ow Cash ow __ -$30,000 2,000 _ 4,000 5,000 15,000 20,000 9. If your tenant pays you rent of $30,000 a year for 10 years, what is the present value of the series of payments discounted at 12% annually? 10. You are going to invest $400,000 in a real estate investment project that generates the following cash ows. 150,000 150,000 150,000 150,000 150,000 Assuming a 10% discount rate, what is the NPV of this project? What is the IRR

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