Question

In: Accounting

Given the following information provide an analysis that answers the questions at the end of the...

Given the following information provide an analysis that answers the questions at the end of the assignment.

Purchase Price: $4,250,000

Rents:

Tenant

Unit 1

Unit 2

Unit 3

Unit 4

Unit 5

Unit 6

Unit 7

Unit 8

Monthly Rent

$5,400

$5,400

$6,200

$3,500

$3,600

$3,300

$3,700

$3,100

Year 1 NOI: $248,678

NOI Growth Rate: 2.6%

Loan:

           LTV: 75%

           Amortization Period: 25 years, Term: 10 years

           Interest Rate: 3.35%

           Lender Points: 2%

Selling Costs: 3%

Going Out Cap Rate: 5.5%

Discount Rate: 10%

Questions:

  1. What is the going in cap rate? 5.85%
  2. What is year 1 PGI? $410,400
  3. What is the DSCR?
  4. What is your Initial Investment? $3,187,500
  5. What is the sale price after the five-year hold? $3,272,500
  6. What is the loan balance at sale?
  7. What is the NPV for this project?
  8. What id the IRR for this project?
  9. What is the DCF for this project?
  10. What is the reversion amount?

Can someone teach me how to do this on excel or at least write out the formulas for me to be able to apply it to excel? thank you so much

Solutions

Expert Solution

Please see below formulas for the questions you need help in formula:

DSCR = Net Operating Income Divided by Total Debt service

(Net Operating Income is the Profit before Tax and Interest payments and Total Debt service is the amount of Interest obligtions on Debt)

Loan Balance at Sale = Loan Amount- Principal repayment

Net Present Value for this project= NPV (Discount rate,cells with cash flow value)

In Cash flow cells, Select each cashh flow value and separate it by comma (,)

IRR = IRR (Sum of Initial outflow and future cash flows)

In Value part give reference to sum of Outflow(Negative amount) and Inflow (Positive Amount)

DCF of the Project : XNPV (Rate,Values,Dates)

Rate : Discount rate, Values: Array of Cash Flow values, Dates: Array of Dates corresponding to each cash flow value.

Reversion Amount = Future Sale Price of the Asset- Balance Loan -Selling expense

Balance loan- Loan balance- Principal repayment, Selling expense- Cost to sale the asset

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Given the following information provide an analysis that answers the questions at the end of the...
Given the following information provide an analysis that answers the questions at the end of the assignment. Purchase Price: $4,250,000 Rents: Tenant Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 Unit 8 Monthly Rent $5,400 $5,400 $6,200 $3,500 $3,600 $3,300 $3,700 $3,100 Year 1 NOI: $248,678 NOI Growth Rate: 2.6% Loan:            LTV: 75%            Amortization Period: 25 years, Term: 10 years            Interest Rate: 3.35%            Lender Points: 2% Selling Costs: 3% Going Out Cap Rate: 5.5%...
Case Study Analysis Read carefully the following case/scenario and answer the questions given at the end....
Case Study Analysis Read carefully the following case/scenario and answer the questions given at the end. A manufacturing company, involved in the business of food processing, faces a technical problem at one of their major plants. Recently they faced a technical issue which resulted in loss of production and was fixed by engaging their mechanical staff. Now this technical problem can result in even bigger loss of production and if it gains attention of public through social or electronic media,...
Use EXCEL and DATA ANALYSIS to find the answers to these questions. Provide all EXCEL printouts...
Use EXCEL and DATA ANALYSIS to find the answers to these questions. Provide all EXCEL printouts and 6 step write-ups for each of the two problems. A food company is concerned about recent criticism of the sugar content of their children’s cereals. The data show the sugar content (as a percentage of weight) of 15 national brands of children and adult cereals. Children’s Cereal’s Adult’s Cereal 40.3 20.5 55 30.2 45.7 22.2 43.3 27.5 50.3 34.4 45.9 22.2 53.5 16.6...
[The following information applies to the questions displayed below.]     The following calendar year-end information is...
[The following information applies to the questions displayed below.]     The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company.     Advertising expense $ 28,200 Direct labor $ 686,300 Depreciation expense—Office equipment 9,100 Income taxes expense 268,200 Depreciation expense—Selling equipment 10,200 Indirect labor 58,600 Depreciation expense—Factory equipment 32,800 Miscellaneous production costs 10,700 Factory supervision 131,500 Office salaries expense 73,000 Factory supplies used 8,400 Raw materials purchases 967,000 Factory utilities...
home / study / business / accounting / accounting questions and answers / the following information...
home / study / business / accounting / accounting questions and answers / the following information is given for aphria farming services inc. for the year ended december ... Question: The following information is given for Aphria Farming Services Inc. for the year ended December 3... (1 bookmark) The following information is given for Aphria Farming Services Inc. for the year ended December 31, 2018. The account balances (all of which had their normal balance of debit or credit) at...
These questions are based on the following information compiled for our company at the end of...
These questions are based on the following information compiled for our company at the end of the current year: Cash $2,000 Accounts receivable $2,500 Equipment $200 Vehicle $4,000 Accounts payable $1,350 Unearned revenue $700 Common stock $1,000 Retained earnings $3,950 (Balance as of January 1 of the current year) Dividends $500 Service revenue $4,500 Salaries expense $1,500 Rent expense $300 Advertising expense $500 Calculate the dollar amount for net income on our current year’s income statement (December 31). a) 1700...
[The following information applies to the questions displayed below.] At the end of January of the...
[The following information applies to the questions displayed below.] At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $16.80 per unit: Transactions Units Amount Inventory, January 1 690 $ 3,105 Purchase, January 12 660 4,290 Purchase, January 26 220 1,870 Sale (550) Sale (200) Required: 1a. Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average...
Questions 6, and 7 refer to the following information: At the end of the year, a...
Questions 6, and 7 refer to the following information: At the end of the year, a company offered to buy 4,740 units of a product from X Company for a special price of $11.00 each instead of the company's regular price of $18.00 each. The following information relates to the 65,000 units of the product that X Company made and sold to its regular customers during the year: Per-Unit Total      Cost of goods sold $7.55    $490,750    Period costs 2.22    144,300   ...
Required information [The following information applies to the questions displayed below.]    The following calendar year-end...
Required information [The following information applies to the questions displayed below.]    The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company. Advertising expense $ 28,750 Direct labor $ 675,480 Depreciation expense—Office equipment 7,250 Income taxes expense 233,725 Depreciation expense—Selling equipment 8,600 Indirect labor 56,875 Depreciation expense—Factory equipment 33,550 Miscellaneous production costs 8,425 Factory supervision 102,600 Office salaries expense 63,000 Factory supplies used 7,350 Raw materials purchases 925,000 Factory...
Required information [The following information applies to the questions displayed below.]     The following calendar year-end...
Required information [The following information applies to the questions displayed below.]     The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company.     Advertising expense $ 33,400 Direct labor $ 672,000 Depreciation expense—Office equipment 7,700 Income taxes expense 241,800 Depreciation expense—Selling equipment 10,000 Indirect labor 58,000 Depreciation expense—Factory equipment 37,700 Miscellaneous production costs 9,700 Factory supervision 134,900 Office salaries expense 62,000 Factory supplies used 9,000 Raw materials purchases 972,000...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT