The solution is as follows:
17. A real estate investment has the following expected cash flows. $34.68 million in 2017 (t=0):...
A real estate investment has the following expected cash flows: Year Cash Flows 1 $10,000 2 25,000 3 50,000 4 40,000 The discount rate is 7 percent. What is the investment's present value?
A real estate investment has the following expected cash flows: Cash Flows $8,000 19,000 24,000 21,000 Year 1 2 3 4 The discount rate is 9 percent. What is the investment's present value? Round your answer to 2 decimal places; for example 2345.25.
A real estate investment has the following expected cash flows: Year Cash Flows 1 $10,000 2 25,000 3 50,000 4 35,000 The initial cost is $85,000. The discount rate is 8.25 percent. What is the investment's present value? a). $10,479 b). $13,479 c.) $16,479 d). $14,479 e). $15,479
A real estate investment has the following expected cash flows: YEAR CASH FLOW 0 -$113,435.00 1 $12,051.00 2 $29,277.00 3 $50,339.00 4 $47,576.00 The investor wants a 6.00% return on this investment. What is the NPV of this opportunity?
A real estate property has the following expected cash flows: YEAR CASH FLOW 0 -$94,117.00 1 $10,661.00 2 $25,700.00 3 $50,470.00 4 $38,629.00 The investor wants to earn at least 10.00% on any real estate property. Based on the IRR of this investment, should the investor purchase this property? (YES OR NO)
1.A real estate investment has the following expected cash flows: YEAR CASH FLOW 0 -$102,359.00 1 $13,862.00 2 $28,729.00 3 $50,167.00 4 $41,494.00 The investor wants a 9.00% return on this investment. What is the NPV of this opportunity? 2.A new IT server for a company will cost $447,481.00 today. The company expects the server will create an incremental cash flow to the firm of $130,370.00 per year. The company wants an 10.00% return for all capital budgeting projects. The...
02. You are evaluating a peculiar real-estate venture that has the following cash flows: an outflow of IS210K at the end of the first year, a cash flow of IS98K in three years, a cash inflow of 1$101K two years after the preceding cash flow, a four-year annuity of cash flows with the first I$S70K cash flow occurring at t 9, and a perpetual series of $10K cash flows starting with the first cash flow 15 years from today. (a)...
A project has the following cash flows. Cash flows are paid at year-end. Year CF 2017 -$200 2018 +$80 2019 +$80 2020 +$80 2021 +$80 What is the payback period if the opportunity cost of capital (OCC) is 11%? 3,5,4, or 2 years?
please show work neatly and explain! 10. Assume the following expected free cash flows for Peterson Corporation for 2017: Current Forecast Horizon Terminal 2017 2018 2019 2020 2021 Year Free cash flows to the firm (FCFF) $4,651 54,884 $5,128 $5,384 $5,653 $5,766 The company has net nonoperating obligations (NNO) of $12,000 and 3,000 shares outstanding Calculate the per share stock price using the FCFF information above, a discount rate of 7%, and a terminal growth rate of 2%.
Listed below are yearly forecasts of “free cash flow” (operating cash flow plus investment-related cash flow) for Bomkat LLC. Year Cash Flow 2018 -$2.0 million. 2019 -$1.2 million. 2020 -$0.4 million. 2021 $0.2 million. 2022 $0.7 million. 2023 $1.1 million. After year 2023, cash flows are anticipated to grow by 2% per year, in perpetuity. For simplicity, assume all that cash flows occur at the end of each year. Assume a discount rate of 8% per year. (a) What is...