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Tandem has retained you as its consultant. You project a forecast for Plaza Mondawin for the next five years (year 6-10). Due to a slowing

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Tandem has retained you as its consultant. You project a forecast for Plaza Mondawin for the next five years (year 6-10). Due to a slowing economy, you believe that rents and expenses will not continue to grow at the same 4% per year, and instead use 2% growth for the next five years (Year 6 rent is growing 4% from year 5 rent; 2% applies for the growths after that). Your economist believes that the market property growth rates will change after year 5 , and decelerate to 2.5% annual growth for the next five years (year 6-10). Lastly, you believe the legislature will pass a new tax law beginning in year 6 with a new marginal income tax rate of 28% and an unchanged capital gain tax rate of 28%. 5) [7 points] Calculate how much Tandem would be able to sell Plaza Mondawin if Tandem were to hold it for the next five years ( a 10-year total holding period). [make sure your answer is shown in cell Y32 ] 6) [8 points] Calculate how much Tandem would have received from the proceeds of the sale were Plaza Mondawin sold five years from now. The same loan from previous period (years 1-5) would continue to next period (years 6-10). [make sure your answer is shown in shown in cell AB37 ] 8) [8 points] Based on your analysis, can you recommend with curtainty whether is in he tier to sell Plaza Mondawin in year 5 or in year 10? If your anywer ia no, what ofher. information would you need? [make sure your answer is shown in cell Alli. Write your answer in no more than 5 sentences inside the cell.] Tandem has retained you as its consultant. You project a forecast for Plaza Mondawin for the next five years (year 6-10). Due to a slowing economy, you believe that rents and expenses will not continue to grow at the same 4% per year, and instead use 2% growth for the next five years (Year 6 rent is growing 4% from year 5 rent; 2% applies for the growths after that). Your economist believes that the market property growth rates will change after year 5 , and decelerate to 2.5% annual growth for the next five years (year 6-10). Lastly, you believe the legislature will pass a new tax law beginning in year 6 with a new marginal income tax rate of 28% and an unchanged capital gain tax rate of 28%. 5) [7 points] Calculate how much Tandem would be able to sell Plaza Mondawin if Tandem were to hold it for the next five years ( a 10-year total holding period). [make sure your answer is shown in cell Y32 ] 6) [8 points] Calculate how much Tandem would have received from the proceeds of the sale were Plaza Mondawin sold five years from now. The same loan from previous period (years 1-5) would continue to next period (years 6-10). [make sure your answer is shown in shown in cell AB37 ] 8) [8 points] Based on your analysis, can you recommend with curtainty whether is in he tier to sell Plaza Mondawin in year 5 or in year 10? If your anywer ia no, what ofher. information would you need? [make sure your answer is shown in cell Alli. Write your answer in no more than 5 sentences inside the cell.]

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