Given the following information, calculate the initial equity investment (i.e., the cash down payment) required to purch...
Given the following information, calculate the initial equity investment (i.e., the cash down payment) required to purchase the specific property. Purchase Price: $1,000,000; LTV: 75%; Up-front financing costs: 3% of loan amount. (Input your answer rounded to the nearest whole dollar and without the $ sign, e.g., 1000)
Homework Answers
initial equity investment
LTV = 75 %
= 1,000,000 X 0.75 = 750,000
LOAN AMOUNT = 750,000
EQUITY INVESTMENT = 250,000 + (750,000 X 0.03)
= $ 272,500
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Given the following information, calculate the initial equity investment (i.e., the cash down payment) required to purch...
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Use the following information:
Annual cash inflows that will arise from two competing
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Year
A
B
1
$4,000
$16,000
2
$8,000
$12,000
3
$12,000
$8,000
4
$16,000
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$40,000
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Each investment project will require the same investment outlay.
The discount rate is 16%
Compute the present value of the cash inflows for Investment A.
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(Round to nearest...
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d.
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Use the following information:
Annual cash inflows that will arise from two competing
investment projects are given below:
Investment
Year
A
B
1
$4,000
$16,000
2
$8,000
$12,000
3
$12,000
$8,000
4
$16,000
$4,000
Total
$40,000
$40,000
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The discount rate is 16%
Compute the present value of the cash inflows for Investment A.
(Round to nearest dollar)
Compute the present value of the cash inflows for Investment B.
(Round to nearest...
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c.
d.
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