UB Activity Submission Microsoft Excel Tleni Mitou M Developer Home Insert Page Layout Formulas Data Review View Arad 10 Wrap Text Merge & Center Paste i Format Painter Chipboard El 085 Conditional Format Formatting as Table Styles cell Styles Font Insert Delete Fum Cell Alignment Number KL M N O P EO You are an investor with 12 million cash to invest. You wish to purchase an office building with this cash. You have a choice between three identical office buildings that are located in different areas of the same city. The following information is available regarding the three possible investments Building 1 1 Building 2 Distance from the CBD (km) Floor space (square metres) Asking price (GBP) Management costs. GBP per square metre per month) Building 3 10 2,000 11,000,000 1,000 8,000,000 15 1,500 12,000,000 1. Commercial rent in the central business district (CBD) is 60 per square metre per month and decreases cumulatively by 5% for each kilometre located away from the CBD. Tip: Cumulatively means that, if the building is located 2 kilometres away from the CBD, rent decreases by 5% for the first kilometre (which gives you 57). and by another 5% on 57 on the second kilometre, which gives you 54 Building 2 has been certified as complying with sustainability standards. A suitable discount rate for all areas is 6% There is a fountain outside Building 1 that you can persuade the local government to renovate by the time you purchase the property Similar renovations to properties in the area have increased the rent charged per square metre by 3% 5. The local government will impose a 2% tax, by the time you complete the purchase of the property, on the sale of all properties that are not certified as compliant with sustainability standards Ignore the effects of any other taxes Instructions Answer sheet Ready Dop Home Insert Page Layout Formulas Review View Developer E Calibri U u L Font A A E 33 Format Painter B Chaboard 2 H16 Wrap Text Merge & Center Alignment General S. Number Condial Formatting A 2 Distance from the CBD (km) 3 Floor space (square metres) 4 Asking price (GBP) 5 Management costs (per square metre per month) 6 Discount rate (%) 7 Sustainability certification (Yes/No) 8 Fountain (Yes/No) Building A Building B Building C 0 5 10 1.000 1,500 2,000 8,000,000 12,000,000 11.000.000 15 5 10 6% 6% 6% NO YES NO NO NO NO YES 10 Rent per square metre per month 11 Management costs per square metre per month 12 Net operating income per square metre per month 13 14 Monthly net operating income 15 Annual net operating income 16 17 Present value of net operating income 18 19 Asking price 20 Transfer tax 21 Initial investment 23 Net present value 24 Intemal rate of return Sheet1 Sheet2 Ready Sheet3