In: Civil Engineering

1 point) (Once you have their money, never give it back.) An apartment complex on Ferenginar with 250 units currently has 187 occupants. The current rent for a unit is 935 slips of Gold-Pressed Latinum. The owner of the complex knows from experience that he loses one occupant every time he raises the rent by 2.5 slips of Latinum. Since "profit is its own reward", the owner wants to maximize his profit so he asks for our help, even though he knows that "free advice is seldom cheap". What should be our recommendation for the optimal rent? slips of Gold-Pressed Latinum

Assume you are buying an existing apartment
complex and have made the following assumptions:
Data
Acquisition Cost
$5,000,000
Project Length
5
Year 1 Rental Income
$560,000
Rental Income Annual Growth
3%
Year 1 Expenses
$200,000
Expenses Annual Growth
2%
Ordinary Tax Rate
28%
Capital Gains Tax Rate
15%
Annual Appreciation Rate of Property Market Value
3%
30-year Fixed Fully Amortizing Loan (monthly
payments)
Term in Years
30
Interest Rate (Annualized)
6%
LTV
75%
The proceeds of the loan are received...

You are considering the purchase of an apartment complex. The
following assumptions are made: • The purchase price is $1,150,000.
• Potential gross income (PGI) for the first year of operations is
projected to be $195,000. • PGI is expected to increase at 4
percent per year. • 3% vacancies are expected. • Operating expenses
are estimated at 30 percent of effective gross income. Capital
expenditures are estimated at 10 percent of effective gross income.
• The market value of...

You are considering the purchase of an
apartment complex. The following assumptions are made:
•
The purchase price is $1,250,000.
•
Potential gross income (PGI) for the first year of operations is
projected to be $191,000.
•
PGI is expected to increase at 4.5 percent per year.
• 5%
vacancies are expected.
•
Operating expenses are estimated at 35 percent of effective gross
income. Capital expenditures are estimated at 15 percent of
effective gross income.
• The
market value of...

Once you have people on your money, And you owne others money, You
can create assets,liability and equity accounts. How can having a
balance sheet be of value to you?

You are considering the purchase of an apartment complex.
Purchase price: $775,000
BTCF:
Year NOI
1 $103,085
2 $108,361
3 $113,875
4 $119,636
5 $125,651
Holding period is four years
Cap rate is expected to be 7% in year 4
Selling expenses will be 5% of the sale price
The 4-year Treasury bill rate is 3% and your risk premium for
this project is 8%
a) Calculate the NPV of this project assuming that you do not
take any mortgages...

You are a real estate valuer for Bank of Brunei. You are valuing
an apartment complex in Kuala Lumpur, that your client wishes to
purchase. They have provided you with the following details:
Rental income for 2021 is expected to be $5,000,000 if all
apartments are occupied. The vacancy rate is expected to be 25% if
the economy goes into recession, or 3% if the economy grows. The
probability of a growing economy is 40%. Expenses per year include
government...

You own five apartment complexes. You created a dataset listing the apartment numbers, apartment complex names, number of bedrooms, rental price, whether the apartment is occupied or not, and the date the apartment was last remodeled. You want to insert some functions to perform calculations to help you decide which apartments need to be remodeled. To focus on the apartments that need to be remodeled, you will use advanced filtering and database functions for your analysis. Finally, you are considering...

Time value of money: 1 point
You want to have an amount of $30,000 in five years.
Calculate the amount you need to save each year in the next five
years so you can achieve this goal. Assume that the interest rate
is 6%, that interest is compounded annually, and that you put money
into your saving account at the beginning of each
year.
Bond valuation: 2 points
XYZ Corporation has an outstanding 20-year bond with a
$10,000 face value...

You are considering a creative
financing arrangement for the purchase of a small apartment
complex. The property is selling for $2,600,000. Both lenders have
agreed to allow the arrangement to proceed, if you decide to pursue
it. The first mortgage will be for 65% LTV over 25 years with
monthly payments at 9%. The first mortgage charges a 0.5%
origination fee and no points. The second mortgage will be for 20%
LTV over 10 years with monthly payments at 15%....

As manager of Precision Properties, you are considering the
purchase of an apartment complex. The following assumptions are
made:
• The purchase price is $2,000,000.
• Potential gross income (PGI) for the first year of operations
is projected to be $320,000.
• PGI is expected to increase at 4 percent per year.
• No vacancies are expected.
• Operating expenses are estimated at 38 percent of effective
gross income. Ignore capital expenditures.
• The market value of the investment is...

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