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Question 4 Please the first 2 pictures are the questions. the 2nd two are the excel template where they go. thank you. You can use

Question 4 Please
the first 2 pictures are the questions. the 2nd two are the excel template where they go. thank you.
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
You can use your own numbers for the ones not given.
4. Nimish has provided some quick, rough projections of expected rental revenues through Year I0, if the company decides to hold onto the building and let the units out for rent. Nimish's assumptions are shown in blue on the accompanying spreadsheet. a. Calculate the cash flows on the property for each year. b. Calculate the PV of the property cash flows for each year. c. Assume that the total development costs for the building are the same as your answer to question 3. What is the present value of all potential before-tax cash flows through Year 5 ? With those revenues in mind, what is the minimum price at which you would have to sell the building in Year 5 to generate an NPV greater than zero? d. What is the minimum price at which you would have to sell the building in Year 10 to generate an NPV greater than zero? Question 4 Determine appropriate values for each assumption, then use those values to build a rough est Question 4c and 4d NPV of Cash Flows 4. Nimish has provided some quick, rough projections of expected rental revenues through Year I0, if the company decides to hold onto the building and let the units out for rent. Nimish's assumptions are shown in blue on the accompanying spreadsheet. a. Calculate the cash flows on the property for each year. b. Calculate the PV of the property cash flows for each year. c. Assume that the total development costs for the building are the same as your answer to question 3. What is the present value of all potential before-tax cash flows through Year 5 ? With those revenues in mind, what is the minimum price at which you would have to sell the building in Year 5 to generate an NPV greater than zero? d. What is the minimum price at which you would have to sell the building in Year 10 to generate an NPV greater than zero? Question 4 Determine appropriate values for each assumption, then use those values to build a rough est Question 4c and 4d NPV of Cash Flows

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