Real Estate Investment Proposal Evaluation

Question 35 (1.3 points) Listen You are the project monitor for a house project in Toronto. You have been provided with the following progress data for the project. What would be the certified loan advance for Draw 2? Project Financing Project Name Estimated Property Value Total Construction Cost Loan-to-value (LTV) Ratio Progress Draw Schedule Draw 1 Draw 2 Draw 3 Draw 4 Draw ABC House $1,000,000 $700,000 70.0% % Completion to Date 30% 50% 80% 100% $108,000 $161,000 $126,000 $144,000

Exercise 24-22A (Algo) Using Excel to compute IRR LO P4 Following is information on two alternative investments. Beachside Resort is considering building a new pool or spa. The company requires a 10% return from its investments. Initial investment Net cash flown in Pool Spa Year 1 Year 2 IRR 41,100 57,100 81,395 91,500 66,100 Compute the internal rate of return for each of the projects using excel functions. (Round your answers to 2 decimal places.) Year 3 Year 4 Year 5 % Pool Spa $ (171,000) $ (116,000) % 33,100 51,100 67,100 73,100 25,100

QUESTION 12 You invest $55 000 today into a project with a life of 4 years and which is expected to generate the following cash flows. Year 1. Cashflow 12 000 27 300 2 329 22 000 If you require to invest in projects with a payback period of 2.8 years or less, would this project be suitable? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 10pt 27C Rain showers I!! II

****Only answer this question if you are sure about the correct answer**** ***Return on investment Question*** 27. If you want to remodel your house: a. The house was bought with a cost of $175,000. b. The house remodel will cost $38,000. c. After the remodel, the expected house value could increase by 4% 1. What is the ROI % (….........) 2. Yes or no, based on ROI is this a good investment (..............)

Use python to answer the following question: Question 5 A capital investment in an equipment with an upfront cost of $23,540 will provide you with the following annual cash flow stream (paid end of year): 1. $2,000 2. $1,456 3. $3,230 4. $6,850 5. $2,384 6. $1,234 7. $5,987 8. $4,190 The project will incur the following cost for maintenance and repair (paid end of year): Year 3: ($2,984) Year 4: ($1,837) Year 6-8: ($2,000) Calculate the NPV of the investment and comment on whether you should invest in the project. Why or why not? What is the IRR of the investment? The required rate of return is 3.5%.

Please only answer question 5.4 and 5.5

Exhibit 2.3A Examp'e Comparing Two Projects Using the Payback Method Project A Project B Formulas Investment Annual saving 5750,000 5215,000 $250.000 580,000 Project A Payback 07/D8) Project B Payback (7/P8) Payback Period" Rate of Return"* Project A: Rate of Return (06/D7) Project D. Rate of Return (F8/P7) Accept/Reject Exclanetion Project A Accept/Reject Accept is Payback<5 Years and Rate of Return 15% Project B * Note: Parbnck does not use she time valce of money ** Note: Rate of returnis reciprocalof Fayback

4.3.2 Rick's Dilemma: How to Value the Midtown Manhattan Property Let's begin by trying to value your property. Remember, this is a building complex located on Madison Avenue in Midtown Manhattan. The ground rent is about $4.6 million. Obviously, you want the best price on the best terms. If you were to make an initial estimate of the property's value, which would you pick? $45 million O $150 million $200 million $250 million O $400 million ㄷ $450 million or more

Question 6 options: Investigation and a reasonable amount of work had brought the following project to the attention of Arthur Morgan, CEO of Valentine Ventures.   The following information is presented to you:               CCA rate Building:                              4%             CCA rate Equipment:                        30%             Cost of Capital                                    12%             Corporate Tax Rate                             40%   An immediate cash outlay of $800,000 will be required to purchase vacant land.   The vacant land will be required to house the specialized building that will be constructed over the next 2 years.  The building will require an immediate down payment of $700,000 now and $1,600,000 upon completion of the building at the end of the second year. New equipment also will be placed in the building at the end of the 2nd year.  The equipment will require annual year end purchase payments of $400,000 in year one and two.  The equipment…

Homework, Chapter 26 Average Rate of Return The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A Project z Amount of investment $80,000 $92,000 Useful life 4 years 7 years Estimated residual value Estimated total income over the useful life $8,800 $27,370 Determine the expected average rate of return for each project. Round your answers to one decimal place. Project A Project z

26 Exercises 3, 5-7, 14 &18 & 15, Tableau D...i bok int rint rences Information for two alternative projects involving machinery investments follows: Initial investment Salvage value Annual income Required A Project 1 $ (122,000) Required B Project 1 Project 2 0 15,250 a. Compute accounting rate of return for each project. b. Based on accounting rate of return, which project is preferred? Complete this question by entering your answers in the tabs below. Project 2 $ (92,000) 12,000 12,480 Compute accounting rate of return for each project. Numerator: Saved Accounting Rate of Return I < Prev Denominator: 3 of 9 IL Next Accounting rate of return

​Long-term investment​ decision, payback method Personal Finance Problem    Bill Williams has the opportunity to invest in project A that costs $6,400 today and promises to pay $2,100​, $2,600​, $2,600​, $2,000 $1,800 over the next 5 years. ​  Or, Bill can invest $6,400 in project B that promises to pay $1,600​, $1,600​, $1,600​, $3,600 $3,900 over the next 5 years.   ​(​Hint: For mixed stream cash​ inflows, calculate cumulative cash inflows on a​ year-to-year basis until the initial investment is recovered.​)   a.  How long will it take for Bill to recoup his initial investment in project​ A? b.  How long will it take for Bill to recoup his initial investment in project​ B?

QUESTION 13 A large company has the opportunity to select one of seven projects-A, B, C, D, E, F, G-or choose the (do-nothing) alternative. Each project requires a single initial investment as shown in the table below. Information on each alternative was fed into a computer program that calculated the IRR for each project and all the pertinent incremental IRRs as shown in the table below. Project A B C D Initial investment F 10% 9% $13,000 8% $15,000 796 9% 6% 5% $17,000 $19,000 $25,000 596 8% 79 3% If MARR is 5.5%, indicate which decision should be taken. O Select project D O Select project A O Select project E O Select project F O None of the above Rate of return $10,000 $12,000 A 796 8% B 19 596 10% 8% Incremental IRR D C 9% 5% 796 59 E 5% 3% F 10%

Long-term investment decision, payback method Personal Finance Problem Bill Williams has the opportunity to invest in project A that costs $6,800 today and promises to pay $2,100, $2,500, $2,500, $2,000 and $1,800 over the next 5 years. Or, Bill can invest $6,800 in project B that promises to pay $1,500, $1,500, $1,500, $3,500 and $3,900 over the next 5 years. (Hint: For mixed stream cash inflows, calculate cumulative cash inflows on a year-to-year basis until the initial investment is recovered.) a. How long will it take for Bill to recoup his initial investment in project A? b. How long will it take for Bill to recoup his initial investment in project B? c. Using the payback period, which project should Bill choose? d. Do you see any problems with his choice? a. For Bill to recoup his initial investment in project A, it will take years. (Round to two decimal places.) C

​Long-term investment​ decision, payback method Personal Finance Problem   Bill Williams has the opportunity to invest in project A that costs $5,100 today and promises to pay $2,100​, $2,500​, $2,500​, $2,000 $1,900 over the next 5 years. ​    Or, Bill can invest $5,100 in project B that promises to pay $1,300​, $1,300​, $1,300​, $3,400 $3,900 over the next 5 years.   ​(​Hint: For mixed stream cash​ inflows, calculate cumulative cash inflows on a​ year-to-year basis until the initial investment is recovered.​)   a. How long will it take for Bill to recoup his initial investment in project​ A? b. How long will it take for Bill to recoup his initial investment in project​ B? c. Using the payback​ period, which project should Bill​ choose? d. Do you see any problems with his​ choice?

Subject: Engineering Economy

Question 6   A project has expected cash inflows, starting with year 1, of $2,200, $2,900, $3,500 and finally in year four, $4,000. The profitability index is 1.14 and the discount rate is 12 percent. What is the initial cost of the project?    Group of answer choices   $9,211.06 $9,250.00 $8,166.19 $7,899.16 $8,098.24

quiz is acceptung Question 1 (10 points) The Internal Rate of Return is a financial measure that allows us to estimate: a The nominal value of the returns on a project. b The profitability of a potential investment in a project. The variance of returns on a project. The median of the returns on a project. Next Page Once you click Next Page you will not be able to change you answer Support | Schoology Blog I PRIVACY POI JUN 30 MacBook Air

QUESTION 4 Hook n' Crook, Inc. has a 2-year project with the following cash flows: I=-$1,000, C₁ = +$5489, and C₂ =-$-4490. Find the value of the LARGEST IRR of this project. Note: If you wish, you may use the calculator to find one of the IRRS, and then use a method given in your class notes to find the other one, so you can determine which one is the largest number. Give the answer as a percent with two decimals; e.g., 23.24 and, as always, do not include symbols in your answer.

Q. 1 purchase of equipment in the coming year. The capital budget is limited to $5,000,000 for the year. Lori Alleyne, staff analyst at McGloire's, is preparing an analysis of the three projects under consideration by Joyanne McGloire, the company's owner. McGloire Construction is analyzing its capital expenditure proposals for the A в D Project A Project B Project C 1 Projected cash outflow Net initial investment 2 3 $3 000 000 $1 500 000 $4 000 000 4 5 Projected cash inflows Year 1 $1 000 000 1 000 000 1 000 000 1 000 000 $ 400 000 $2 000 000 7 Year 2 900 000 2 000 000 8 Year 3 800 000 200 000 Year 4 100 000 10 11 Required rate of return 10% 10% 10% 1. Because the company's cash is limited, McGloire thinks the payback method should be used to choose between the capital budgeting projects. a. List two benefits and two limitations of using the payback method to choose between projects? b. Calculate the payback period for each of the three project Ignore income taxes. Using the payback…

Math 1324 Project Mohsen Manouchehri plans to purchase a $300,000 home with a down payment of 20% and financing the rest. He has the choice of two loans: a 20-year loan with an interest rate of 5.76% or a 30-year loan with an interest rate of 6.6%. A. Set up the loan formula with the proper values for the variables for each of the loans: P = -kt PMT (1-(1+)) B. Calculate each loan's monthly payment. 20-year loan payment = 30-year loan payment = C. Examine the remaining balance formulas below for each loan. What do the numbers that have replaced the variables in the formulas represent? Define them explicitly for each loan formula. What is the remaining balance of each loan? How many years before the end of the loan terms is this valid? For the 20 year loan: P = 1686 37- 1686.37(1-(1+.0576)-(144), 12