Submit your answers on the Excel spreadsheet, but be sure to show the calculator inputs (i.e. N, PV, etc.) to

receive full credit. 

1. How much would you pay for the right to receive $30,000 at the end of 8 years if you can earn a 12% return on a real estate investment with similar risk? 

2. What constant amount invested at the end of each year at 8.5% annual interest rate will be worth $12,000 at the end of six years? 

3. Your father will convey a property to you in 15 years. If the property is expected to be worth $350,000 when you receive it, what is the present value of the property? Your discount rate is 11.5%. 

4. What is the NPV of $1,000 received at the end of the next four years and $1,800 received at the end of the fifth year if your required return is 10%? 

5. Assuming no income or holding costs during the period, if you purchased a vacant parcel of land eight years ago for $1,150,000, how much would you have to sell it for today in order to yield a 12% annual return on your investment? 

Solve the following questions (6-10) using TVM formulas in Excel. Show your work to receive full credit. 

6. You own a building that a local business wants to rent for the next 10 years. The business owner has offered to either pay you (A) $50,000 in a lump sum today or (B) $8,500 at the end of each of next 10 years. If your required rate of return is 12%, which payment schedule should you accept? 

7. How much would you pay to participate in a real estate project that pays nothing for the first 10 years and $25,000 for the following 10 years if you can earn 14% return on other investments of similar risk? 

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"