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(answered) – 1. A tenant offers to sign a lease paying a rent of $2,500 perDescriptionSolution downloadThe QuestionI need assistance answering the attached 13 questions.?1.A tenant offers to sign a lease paying a rent of $2,500 per month for 10 years (120months). At 0.75% of monthly interest rate, what is the present value of this lease?2.A building is expected to require $1,000,000 in capital improvement expenditures in fiveyears (60 months). The building?s net operating cash flow prior to that time is expected to be atleast $20,000 at the end of every month. How much of that monthly cash flow must the ownersset aside each month in order to have the money available for the capital improvements,assuming monthly interest rate is 1.5%?3.A real estate investor feels that the cash flow from a property will enable her to pay alender $20,000 per year, at the end of every year, for eight years. How much should the lender bewilling to loan her if he requires a 7.5% annual interest rate (monthly compounded, assuming thefirst of the eight equal payments arrives one year from the date the loan is disbursed)?4.If you invest $10,000 and it grows at annual rate of 15% (compounded annually), howmany months it will take to grow to $20,000?5.How much will a $100 deposit made today be worth in 10 years if interest is compoundeddaily at an annual rate of 10%6.Sommers Co.’s bonds currently sell for $1,080 and have a par value of $1,000. They paya $100 annual coupon and have a 10-year maturity, but they can be called in 5 years at $1,125.What is their yield to maturity (YTM)7.A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate ofreturn is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock’scurrent price?8.You are hoping to buy a new boat 3 years from now, and you plan to save $4,200 peryear, beginning one year from today. You will deposit your savings in an account that pays 5.2%annual interest and compounded quarterly. How much will you have just after you make the 3rddeposit, 3 years from now?9.Meacham Enterprises’ bonds currently sell for $1,280 and have a par value of $1,000.They pay a $135 annual coupon and have a 15-year maturity, but they can be called in 7 years at$1,050. What is their yield to call (YTC)10.Curtis Corporation’s noncallable bonds currently sell for $1,165. They have a 15-yearmaturity, an annual coupon of $97, and a par value of $1,000. What is their yield to maturity?11.John owns a 5-story office building with total square footage of 125,000. He acquired theinvestment for $2,500,000. The land represents 30% of his investment. What is John?s annualdepreciation deduction?12.If you invest $10,000 today and it grows at annual rate of 15% (compounded monthly),how many months it will take to grow to $20,000?13.You buy a house of $800,000 today. You put a down payment of 20% and borrow a fixedrate mortgage of $640,000 with monthly payments, annual interest rate of 3.5% and 30 years.After 5 years, market interest rate goes up to 6.5%. How much money will you make in bookfrom the mortgage if you continue to pay the monthly mortgages for the next 25 years and themarket interest rate will stay the same as 6.5%?

(answered) – 1. A tenant offers to sign a lease paying a rent of $2,500 per

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