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Please show the PV in ms excel thank youu Mr. John Dew owns a building in Olongapo. It's a mid-rise building rented as temporary specialized
Please show the PV in ms excel thank youu
Mr. John Dew owns a building in Olongapo. It's a mid-rise building rented as temporary specialized office; contract is renewable yearly. The problem is Mr. John De is thinking of selling the building for PhplOM early this year so he can retire and fund his travels abroad. As a management accountant, he asks your help to assess whether the PhplOM is a fair price. Below are the details he provided: 1. As of December 28, 2022, the building is under renovation and is ready for occupancy by the next tenant at the beginning of next year. 2. Mr. John Dew's tenant requires special arrangement for their offices. Each tenant has unique requirements which involves renovating the whole office to meet their specifications. 3. Tenants do not renew their contract after one year. Once the contracted has ended, Mr. John Dew needs to renovate the building, which takes one year, to meet the next tenant's requirements. The good thing about accommodating specialized offices is that, there are tenants always waiting for the building to be available. 4. Based on engineer's assessment, the building has remaining useful life of 10 years. 5. The rental fee charged is Php3M per year, paid at the beginning of the year. Mr. John Dew increases the rental fee for the next tenant at a rate of 5%. 6. The renovation, which happens every after tenant, costs at around Php500k and paid at the end of the year. Mr. John Dew charged the tenants Php750k for renovation fee which was paid upon move in. 7. Minor repairs and maintenance, whether the building is occupied or not, costs at around PhpZOOk per year. Starting next year, the building will be occupied by a retailer selling K-Pop merchandise and was set to move out to a mall nearby at the end of the year. There are several interested parties wanting to move after the retailer. Provide your recommendation. Use 7% as discount rate. Format: a. Calculate intrinsic value b. Compare it with the initial selling price c. Provide recommendationStep by Step Solution
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