## [answered] Market Value Rent Rental growth # of unit Vacancy Operating

calculate the Broker's Rate based on the cash flows in problem 1 (a) , above. Your reaction with respect to the investment decision?

Market Value

Rent

Rental growth

# of unit

Vacancy

Operating expenses

Operating expenses gr

Loan to value

Interest rate

Maturity of mortgage

Financing cost

Depreciable basis

Depreciation life

Appreciation rate

Holding period

Marginal tax rate

Selling expenses

ROR Depreciation amount

Depreciation/Yr

Loan amount

MCm

Mca

AFC 2,500,000

1,200

3%

25

10%

130,000

3%

80%

5%

15

30,000

75%

27.5

3%

5

34%

6%

9% 340,909.09

68,181.82

2,000,000.00

0.0079079363

0.0948952352

189,790.47

2,000 Amortization Schedule

Year

0

1

2

3

4

5 ADS Interest 189,790.47

189,790.47

189,790.47

189,790.47

189,790.47 Principle 100,000.00

89,790.47

95,510.48

94,279.99

90,796.48

98,993.99

85,846.78 103,943.69

80,649.59 109,140.88 Operating Taxable Income Schedule

Year

1

2

3

4

5 NOI

194000.00

199820.00

205814.60

211989.04

218348.71 Year

1

2

3

4

5 NOI

194000.00

199820.00

205814.60

211989.04

218348.71 Interest

100,000.00

95,510.48

90,796.48

85,846.78

80,649.59 Dep

68,181.82

68,181.82

68,181.82

68,181.82

68,181.82 After-tax Cash Flow

189,790.47

189,790.47

189,790.47

189,790.47

189,790.47 NPV&amp;IRR

Year Equity

ATCF

0

(500,000.0)

1

(3,888.65)

2

(1,573.89)

3

779.79

4

3,172.02

5

1,113,974.08

NPV

\$221,963.71

IRR

17% TAX

8,098.18

11,603.42

15,244.34

19,026.55

16,155.88 Schedule NOI

Oustanding balance

2,000,000.00

1,910,209.53

1,815,929.54

1,716,935.54

1,612,991.85

1,503,850.97 Year

1

2

3

4

5 able Income Schedule

AFC

2,000

2,000

2,000

2,000

22,000 sh Flow

ATCF

(3,888.65)

(1,573.89)

779.79

3,172.02

12,402.36 OTI

23,818.18

34,127.71

44,836.31

55,960.44

47,517.30 PGI

360000.00

370800.00

381924.00

393381.72

405183.17 VBD

36000.00

37080.00

38192.40

39338.17

40518.32 Original basis

2,500,000.00

Cost recovery

340,909.09

2,159,090.91

Selling price

2,898,185.19

Selling expense

173,891.11

UMB

1,503,850.97

Taxible gain

565,203.17

Capital gain

224,294.07

Tax due on sale

118,871.38

ATER

1,101,571.72

PGIM

R

OER

DCR

EDR 6.94

0.08

0.40

1.02

0.01 TOE

130000.00

133900.00

137917.00

142054.51

146316.15 NOI

194000.00

199820.00

205814.60

211989.04

218348.71 PGI

Vacancy

OER

DCR

Loan interest

Loan term

NOI growth

Appreciation

Yield

Holding period 200000

4.50%

34%

1.2

5.00%

30

4%

4%

12%

5% NOI

Mca

Vm

NOI

BTCF

PV 126060

0.0644185948

1630740.32256

105050

1

126060

105050

21010

\$18,758.93 PMTa

105050

MB

\$1,497,488.16

SP5

1917140.81096

PV of BTER 238122.183203

V0

\$1,978,093.58 2

131102.4

105050

26052.4

\$20,768.81 3

136346.496

105050

31296.496

\$22,276.23 4

5

141800.35584 147472.37007

105050

105050

36750.35584 42422.370074

\$23,355.52

\$24,071.59

\$109,231.08

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