Scenario: Application of Time Value of Money in Real Estate Investment You are a financial consultant advising client interested in investing in residential real estate in North Bay, Ontario. Using the concepts explored throughout ACC200, analyze and provide recommendations on the financial outlook of the real estate market for the area. According to the Canadian Real Estate Association (2023), the following table is provided: $500,000 $550,000 $500,000 $450,000 $400,000- $350,000 $300,000 $250,000 $200,000 $150,000 Jan 2014 Jul 2014 2015 Jul 2015 Jan Residential average price North Bay and Area Jan 2016 Jul 2016 Jan 2017 Jul 2017 Jan 2018 Jul 2018 Consider the values that are factors are influencing real estate in the region. Jan 2019 Jul 2019 Jan 2020 Jul 2020 Jan 2021 Jul 2021 Jan 2022 Jul 2022 Jan 2023 Jul 2023 Jan 2024 $600,000 $550.000 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 presented in this table and how current market trends and economic Your written submission should be structured as follows as one Word (.doc or .docx) document: 1. Title Page (2 marks) Include your name, student number, course code, professor name, date, etc. 2. Introduction (3 marks) Provide a brief description about the key points you will be describing in your report. 3. Financial Analysis (10 marks) Calculate the future value of an investment in a North Bay property, assuming a consistent growth rate based on current market trends. Assess the potential return on investment over a 5, 10, and 20-year period. Provide all calculations. 4. Market Analysis (10 marks) Discuss the factors contributing to the current average price in the North Bay real estate market. Analyze how changes in interest rates and the Canadian economy might affect future property values. 5. Reflection (15 marks) Reflect on the importance of understanding the time value of money when making long-term investment decisions, particularly in real estate. Discuss the ethical implications of real estate investment in today's economic

climate and how this can impact the broader Nipissing region in the present and into the future. 6. Conclusion (5 marks) Do you recommend to your client to invest in residential real estate in North Bay, Ontario? Why or why not? 7. References (5 marks) In APA format, list all references used to inform your thinking throughout the report as applicable, such as your course textbook, the CREA, Bay Today articles,

3. Financial Analysis (10 marks) - Calculate the future value of an investment in a North Bay property, assuming a consistent growth rate based on current market trends. - Assess the potential return on investment over a 5, 10, and 20-year period. - Provide all calculations. 4. Market Analysis (10 marks) - Discuss the factors contributing to the current average price in the North Bay real estate market. - Analyze how changes in interest rates and the Canadian economy might affect future property values. 5. Reflection ( 15 marks) - Reflect on the importance of understanding the time value of money when making long-term investment decisions, particularly in real estate. - Discuss the ethical implications of real estate investment in today's economic climate and how this can impact the broader Nipissing region in the present and into the future. 6. Conclusion (5 marks) - Do you recommend to your client to invest in residential real estate in North Bay. Ontario? Why or why not? 7. References ( 5 marks) - In APA format, list all references used to inform your thinking throughout the report as applicable, such as your course textbook, the CREA, Bay Today articles, etc