A residential project is bought at Php7.5M and loaned from an institutional investor. The projected gross...

A residential project is bought at Php7.5M and loaned from an institutional investor. The projected gross income and expense of the project to be rented per month are Php96,000 and Php7,000 respectively . (a) Provide the income, balance sheet, and cash flow statement. (b) compare extensively the value generated if the loan is to be paid in 15 years against paying it in 30 years considering 6% annual rate of interest and an opportunity cost of 10% per annum.

Solutions

Expert Solution

This solution comprises income statement, Balancesheet and cash flow statement and comparison of two option.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

An investor would like to invest in a residential project that consists of 150 villas and...

An investor would like to invest in a residential project that consists of 150 villas and a 10 floors building having 20 apartments with other public facilities. The project construction duration will be 5 years. The investor was advised that this investment option should be studied carefully before deciding to accept or reject this opportunity. If you are allocated to conduct this study, what processes and steps you will consider while conducting this study. Justify your answer

PLEASE ANSWER IN EXCEL WITH WORK. An investor has projected three possible scenarios for a project...

PLEASE ANSWER IN EXCEL WITH WORK. An investor has projected three possible scenarios for a project as follows: Pessimistic- NOI will be $200,000 the first year, and then decrease 2 percent per year over a five year holding period. The property will sell for 1.8 million after five year. Most Likely- NOI will be level at $200,000 per year for the next five years(level NOI) and the property will sell for 2 million. Optimistic- NOI will be 200,000 the first...

An institutional investor wishes to sell part of their bond portfolio. Which of the following risk...

An institutional investor wishes to sell part of their bond portfolio. Which of the following risk factors is most significant in affecting the cost of this transaction? Credit risk Liquidity risk Reinvestment risk

An institutional investor has 45% of their assets in private investments – private equity and private...

An institutional investor has 45% of their assets in private investments – private equity and private debt. These investments do not trade daily and do not have daily pricing. (Buying and selling these investments is somewhat difficult.) This allocation has allowed them to achieve top performance over the past decade. How is this a challenge to managing their rebalance policy if there is a substantial recession? How could this help or hurt them?

An English institutional investor has invested in a portfolio of stocks in Russia. The annual inflation...

An English institutional investor has invested in a portfolio of stocks in Russia. The annual inflation rate is 6 percent in Russia and 2.5 percent in the England. Suppose that the annual return on the portfolio is 12 percent in Russian rubles, and the Russian ruble depreciated with respect to the pound by 5 percent. Also suppose that a Russian institutional investor also held a portfolio with the same composition. Compare the real returns for both investors, and discuss why...

An investor bought the share of ABC Corp for $100. One year from now, ABC pays...

An investor bought the share of ABC Corp for $100. One year from now, ABC pays a dividend of $5 per share and the share price rises to $125. On the basis of this information, the dividend yield, capital gain, and total expected return for holding ABC stock for one year amounts to: a. 5%, 20%, and 25% b. 5%, 25% and 30% c. 4%, 20% and 30% d. 20%, 4%, 30%

What is meant by the continuum of institutional long-term care? Discuss clinical services delivered by residential/personal...

What is meant by the continuum of institutional long-term care? Discuss clinical services delivered by residential/personal care facilities,assisted living facilities and skilled nursing facilities.

A real estate investor has the opportunity to purchase land currently zoned as residential. If the...

A real estate investor has the opportunity to purchase land currently zoned as residential. If the county board approves a request to rezone the property as commercial within the next year, the investor will be able to lease the land to a large discount firm that wants to open a new store on the property. However, if the zoning change is not approved, the investor will have to sell the property at a loss. Profits (in thousands of dollars) are...

Suppose that an investor is considering the purchase of an multifamily housing. The potential gross income...

Suppose that an investor is considering the purchase of an multifamily housing. The potential gross income of the first year of operations has been estimated at $550,000. To value the property, the investor assume the following factors: Rents are estimated to increase by 2.5% per year. 5.5% vacancy loss rate and no other income. The vacancy loss rate will remain constant. Fixed and variable expenses were estimated at $97,000 and $155,000, respectively. These expenses will continue to represent the same...

An Australian investor bought shares in British Telecom at the start of the year for £108...

An Australian investor bought shares in British Telecom at the start of the year for £108 per share and sold them at the end of the year for £122 per share. During the year they paid a dividend of £9 per share. Over the year, the exchange rate went from A$1.84/£ to A$1.82/£. What was the total Australian dollar return, in percent, on this investment for the year? (if your answer is 18.85%, please enter 0.1885, not 18.85%) An Australian investor...

Subjects