Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using Goal Seek, without consideration of equity, what is the price for which Thomas Paul Investmentshould purchase property 1 to break even? (Break-even point= TotalMonthlyCost=

Using Goal Seek, without consideration of equity, what is the price for which Thomas Paul Investmentshould purchase property 1 to break even? (Break-even point= TotalMonthlyCost= 0.)

Using Goal Seek, without consideration of equity, what is the price for which Thomas Paul Investmentshould purchase property 2 to break even? (Break-even point = Total Monthly Cost = 0.)

Using Goal Seek, without consideration of equity, what is the price for which Thomas Paul Investment should purchase property 3 to break even? (Break-even point = NetProfit = 0).

All the data you need is here:

image text in transcribed \begin{tabular}{|c|c|c|c|c|c|} \hline & A & B & C & D & E \\ \hline 1 & & \multicolumn{3}{|l|}{ Investment Analysis } & \\ \hline 2 & & \multicolumn{3}{|l|}{ Properties in San Diego Califorina } & \\ \hline 3 & & \multicolumn{2}{|l|}{ 2023-11-06 17:42 } & & \\ \hline 4 & & Property 1 & Property 2 & Property 3 & \\ \hline 5 & Total Property Cost & 306,300.00 & $459,950.00 & 510,500.00 & \\ \hline 6 & Annual Property Taxes & 3,690.00 & 5,535.00 & 6,150.00 & \\ \hline 7 & Annual Property Repair & 600.00 & 900.00 & 1,000.00 & \\ \hline 8 & Annual Home Owners Fee & 2,400.00 & 3,600.00 & 2,600.00 & \\ \hline 9 & Annual Operating Expenses & 1,650.00 & 2,475.00 & 2,750.00 & \\ \hline 10 & Annual Lost Rent Budget & 2,900.00 & 3,800.00 & 4,200.00 & \\ \hline 11 & Total Annual Expense & 11,240.00 & 16,310.00 & 16,700.00 & \\ \hline 12 & Monthly Loan Payment & 1,847.00 & 2,771.00 & 3,079.00 & \\ \hline 13 & Monthly Operating Expenses & 936.67 & 1,359.17 & 1,391.67 & \\ \hline 14 & Total Monthly Expenses & 2,783.67 & 4,130.17 & 4,470.67 & \\ \hline 15 & Monthly Rent & 1,450.00 & 1,900.00 & 2,100.00 & \\ \hline 16 & Total Monthly Cost & 1,333.67 & 2,230.17 & 2,370.67 & \\ \hline 17 & Annual Equity Gain & 21,000.00 & 31500 & 35000 & \\ \hline 18 & Annual Total Cost & 16,004.00 & $26,762.00 & 28,448.00 & \\ \hline 19 & Net Profit & 4,996.00 & 4,738.00 & 4,996.00 & \\ \hline 20 & Break Even & & & & \\ \hline \multicolumn{6}{|l|}{21} \\ \hline 22 & \multicolumn{2}{|l|}{ Assumption Table } & & \multicolumn{2}{|l|}{ Data Table } \\ \hline 23 & Closing Cost & 2.10% & & Purchase Price & Monthly Payment \\ \hline 24 & Property Taxes & $1.23 & & 300,000 & 1,847 \\ \hline 25 & Estimated Annual Repair & 0.20% & & 100,000 & 616 \\ \hline 26 & Annual Operating Expenses & 0.55% & & 200,000 & 1,231 \\ \hline 27 & Lost Rent (in months) & 2 & & 300,000 & 1,847 \\ \hline 28 & Loan Interest Rate & 6.25% & & 400,000 & 2,463 \\ \hline 29 & Years of Finance & 30 & & 500,000 & 3,079 \\ \hline 30 & Rent for Property 1 & 1450 & & 600,000 & 3,694 \\ \hline 31 & Rent for Property 2 & 1900 & & 700,000 & 4,310 \\ \hline 32 & Rent for Property 3 & 2100 & & 800,000 & 4,926 \\ \hline 33 & Average Equity Increase Per Year & 7% & & 900,000 & 5,541 \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Computational Finance And Its Applications

Authors: C. A. Brebbia, M. Costantino

1st Edition

1853127094, 978-1853127090

More Books

Students also viewed these Finance questions

Question

Define epistemology.

Answered: 1 week ago