Solve the following questions using a financial calculator. Submit your answers in Excel. Show calculator inputs (i.e. N, PV, etc.) to get partial credit. 1. How much would you pay for the right to receive $15,000 at the end of 20 years if you can earn a 12% return on a real estate investment with similar risk? 2. What constant amount invested at the end of each year at a 15% annual interest rate will be worth $40,000 at the end of five years? 3. Your father will convey a property to you in 15 years. If the property is expected to be worth $600,000 when you receive it, what is the present value of the property? Your discount rate is 9%. 4. What is the present value of $600 received for the next four years and $2,500 received at the end of the fifth year if your required return is 8%? 5. Assuming no income or holding costs during the period, if you purchased a vacant parcel of land five years ago for $1,500,000, how much would you have to sell it for to yield a 10% annual return on your investment? Solve the following questions using TVM formulas in Excel. Show your work to receive full credit. You will receive zero credit if you do you work using a financial calculator and typing your answers into Excel. 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 first 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 flows. Assume a 10% discount rate Year Project 1 Cash flow Project 2 Cash flow 0 -$30,000 -$30,000 1 2,000 20,000 2 4,000 15,000 3 5,000 5,000 4 15,000 4,000 5 20,000 2,000 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 flows. Assuming a 10% discount rate, what is the NPV of this project? What is the IRR?