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Questions 31-40 are four (4) points each. Your employer. Rubio LLC, is considering an investment in an office building that has the following cash flows:
Questions 31-40 are four (4) points each. Your employer. Rubio LLC, is considering an investment in an office building that has the following cash flows: Purchase in Year 0............. $-2.750,000 Year 1............. 220,000 Year 2 Year 3. de 226,000 250,000 Year 4. Year 5 255,000 .... 230.000, and a sale @ $3,290,000 takes place EOY 5 The company's weighted average cost of capital that they use as their discount rate for such calculations is 12% In the Rubio LLC example above, assume that the company bought the office building using 70% mortgage debt at an interest rate of 4.00% over 240 months. 39. What is the leveraged IRR of the project? a. 34.64% b. 24.58% C. 21.48% d. 15.55% 40. Using the company's hurdle rate (discount rate) for leveraged projects of 9.00%, what is the leveraged NPV of the projecte a $ 659,067 b. $ 678,552 C: $ 591,450 d. $953,378 Questions 31-40 are four (4) points each. Your employer. Rubio LLC, is considering an investment in an office building that has the following cash flows: Purchase in Year 0............. $-2.750,000 Year 1............. 220,000 Year 2 Year 3. de 226,000 250,000 Year 4. Year 5 255,000 .... 230.000, and a sale @ $3,290,000 takes place EOY 5 The company's weighted average cost of capital that they use as their discount rate for such calculations is 12% In the Rubio LLC example above, assume that the company bought the office building using 70% mortgage debt at an interest rate of 4.00% over 240 months. 39. What is the leveraged IRR of the project? a. 34.64% b. 24.58% C. 21.48% d. 15.55% 40. Using the company's hurdle rate (discount rate) for leveraged projects of 9.00%, what is the leveraged NPV of the projecte a $ 659,067 b. $ 678,552 C: $ 591,450 d. $953,378
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