I am buying a new house today and plan to make some updates and fixes to...

I am buying a new house today and plan to make some updates and fixes to the new place over the next four years.

Expenses include:

$1,000 for an electric dog fence, installed today but payment is not due until two years from now

$8,000 for new laminate flooring in much of the house, installed now and payment is due now

$12,000 for a new shower and master bath - will wait four years to do this install and pay cash at that time

$500 to add electrical outlets to the unfinished basement - will complete in two years, and pay cash at that time

$5,000 to demo old concrete patio and replace with paver patio including built-in seating and a fire pit - will complete in four years and pay cash at that time

Create a spreadsheet to calculate the amount of money I will need to have on hand today in order to make the expected payments over the next four years. My time value of money is 5%.

Please show to solve in excel.

Expert Solution

I am attaching the screen shot of Excel sheet for your reference

I have shown the formula used in each calculation. Amount that should be in hand today is equal to present value of expected future cash flows. It can be done by two functions, PV and NPV. I have shown the calculations by using both formulas.

Rahul Sunny answered 2 years ago

I have never invested in real estate before but am considering buying a house in Seattle...

I have never invested in real estate before but am considering buying a house in Seattle and turn it into a rental property. Should I expect this to be a value enhancing investment? Explain!

how am i not thinking like an economist? i bought a new house this year, but...

how am i not thinking like an economist? i bought a new house this year, but that house (which was new to me) was originally built in the year 1908. i would classify this as a consumption expenditure for this years GDP. Explain why this is not correct by describing what is and what is not included in this years GDP

I am trying to make a new code that uses functions to make it. My functions...

I am trying to make a new code that uses functions to make it. My functions are below the code. <?php */ $input; $TenBills = 1000; $FiveBills = 500; $OneBills = 100; $Quarters = 25; $Dimes = 10; $Nickels = 5; $Pennies = 1; $YourChange = 0; $input = readline("Hello, please enter your amount of cents:\n"); if(ctype_digit($input)) { $dollars =(int)($input/100); $cents = $input%100; $input >= $TenBills; $YourChange = (int)($input/$TenBills); $input -= $TenBills * $YourChange; print "Change for $dollars dollars...

You are considering buying a beach house as an investment property. The price today for the...

You are considering buying a beach house as an investment property. The price today for the beach house is $240,000. You can fully depreciate the house on a straight-line basis over a thirty year period (and deduct this depreciation expense from your income taxes). The rent you will charge on an annual basis will be $10,000. You will face maintenance costs of $2,000 every year (also tax deductible). You intend to sell the property in ten years, and you expect...

I am buying a firm with an expected perpetual cash flow of $630 but am unsure...

I am buying a firm with an expected perpetual cash flow of $630 but am unsure of its risk. If I think the beta of the firm is zero, when the beta is really 1, how much more will I offer for the firm than it is truly worth? Assume the risk-free rate is 6% and the expected rate of return on the market is 18%. (Input the amount as a positive value.) Present value difference $ ____

You borrow $271,096 today to buy a house. You plan to make monthly payments over a 12-year period.

You borrow $271,096 today to buy a house. You plan to make monthly payments over a 12-year period. The bank has offered you a 4.06% interest rate, compounded monthly.What is your monthly payment amount?

I need to market the new service I am going to make- RENTING clothes, shoes, etc....

I need to market the new service I am going to make- RENTING clothes, shoes, etc. from the company ZARA using the 4Ps and 4Cs.

2. Ted and Jane are buying a house for $280,000. They will make a 25% down...

2. Ted and Jane are buying a house for $280,000. They will make a 25% down payment. They will be able to obtain a loan at 8.5% per annum interest. What will be their annual payment if their loan is for 15 years? 25 years? What will be the monthly payment if their loan is for 15 years? 30 years? The correct answers are below, I just need to know how to solve using a financial calculator 2. 25,288.3, 20,519.45,...

Ms. Tweeter is buying a house with a cost of $350,000. She will make a down...

Ms. Tweeter is buying a house with a cost of $350,000. She will make a down payment of $20,000 on the house, and the rest will be paid for with a mortgage loan. Her mortgage loan has an APR of 4.9% compounded semi-annually, with a weekly payment schedule and a time horizon of 20 years. The first payment is due in one week's time. How much principal have you paid off after 5 years?

I was at a conference today and they were talking about some new lease regulations and...

I was at a conference today and they were talking about some new lease regulations and how that may impact our financial statements. I know that we have a couple of leases, one that we record as a liability and one that we do not. How will this new lease requirement impact us? When does this go into effect? Will we need to restate prior financial statements? Are there any retrospective entries that we have to make? If so, what...

Question