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Elenna [48]
3 years ago
8

You are an employee of University Investment Consultants, Ltd. and have been given the following assignment. You are to present

an investment analysis of a new small residential income producing property for sale to a potential investor. The asking price for the property is $1,250,000; rents are estimated at $200,000 during the first year and are expected to grow at 3 percent per year thereafter. Vacancies and collection losses are expected to be 10 percent of rents. Operating expenses will be 35 percent of effective gross income. A 70 percent loan can be obtained at 11 percent interest for 30 years. The property is expected to appreciate in value at 3 percent per year and is expected to be owned for five years and then sold.a. What is the investor's expected before-tax internal rate of return on equity invested (BTIRR)? b. What is the first-year debt coverage ratio? c. What is the terminal capitalization rate? d. What is the NPV using a 14 percent discount rate? What does this mean? e. What is the profitability index using a 14 percent discount rate? What does this mean?
Business
1 answer:
Mars2501 [29]3 years ago
4 0

Answer:Answer and Explanation:

At the begining we have to calculate loan instalment.

Capital Installment = Loan/360 (12 month * 30 years)

Interest Installment = Balance from...

Explanation:Eliminating entries (including goodwill impairment) and worksheets for various years on january 1, 2013, porter company purchased an 80% interest in the capital stock of salem company for$850,000. at that time, salem company had capital stock of $550,000 and retained earnings of $80,000.differences between the fair value and the book value of the identifiable assets of salem company were asfollows: fair value in excess of book valueequipment$130,000land65,000inv entory40,000the book values of all other assets and liabilities of salem company were equal to their fair values onjanuary 1, 2013. the equipment had a remaining life of five years on january 1, 2013. the inventory was sold in2013.salem company’s net income and dividends declared in 2013 and 2014 were as follows: year 2013 net income of $100,000; dividends declared of $25,000year 2014 net income of $110,000; dividends declared of $35,000required: a. prepare a computation and allocation schedule for the difference between book value of equity acquired andthe value implied by the purchase price. b.present the eliminating/adjusting entries needed on the consolidated worksheet

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True maybe hope this helps
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5 0
3 years ago
Michael had a severe hearing impairment and worked as the supervisor of a fast food restaurant. Michael’s manager and the human
KiRa [710]

Answer: The correct answer is "C) giving up rather than standing up to the boss as required by law.".

Explanation: This is a situation of: <u>giving up rather than standing up to the boss as required by law.</u>

Michael should have sued his boss before the law so that he could instead be compensated for the bad treatment and discrimination and also collect unemployment compensation in the event that the employment relationship is terminated.

6 0
3 years ago
The real interest rate is equal to the:_________
ahrayia [7]

Answer:

D. nominal interest rate minus the inflation rate.

Explanation:

The real interest rate has been adjusted for inflation.

If nominal interest rate is 6% and inflation is 2%, then the real interest rate would be 4%.

I hope my answer helps you

4 0
3 years ago
Logan and Johnathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan's land (adjusted basis of
ZanzabumX [31]

Answer:

a. Logan's recognized gain is $38,600

b. Logan's recognized gain is $23,160

Explanation:

a. If the worth of the land for Jonathan is $183,350, then the gain recognized by Logan would be;

the lower of the realized gain between the amount realized of $231,600 - adjusted basis of $193,000 = $38,600

or the fair market worth of the received boot i.e $48,250.

Therefore, Logan's recognized gain is $38,600

b. Suppose Jonathan's land is worth, $208,440, then we can calculate Logan's recognized gain to be ;

the lower of the realized gain I.e amount realized of $231,600 - adjusted basis $193,00 = $38,600

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6 0
3 years ago
Accounts Payable: $19,207
lisabon 2012 [21]

Answer:

total liabilities = $169,008

Explanation:

total liabilities:

  • Accounts Payable: $19,207
  • Discount on Bonds Payable: ($7,000) ⇒ contra liability account
  • Sales Tax Payable: 3,512
  • FICA Tax Payable: 3,200
  • Bonds Payable: 100,000
  • Note Payable, due in two years 1,709
  • Unearned Service Revenue 30,500 ⇒ must be reported as a liability
  • Salaries and Wages Payable 17,880

to determine the total liabilities we just have to add both current and long term liabilities, and subtract any contra liability accounts = $176,008 - $7,000 = $169,008

7 0
2 years ago
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