Using discounted cash
flow analysis, what is the most an investor wishing to get at least a
10% return should pay for an investment expected to have the following
annual cash flows at the end of each year:
Year 1: $15,100
Year 2: $16,400
Year 3: $16,800
Year 4: $16,700
Year 5: $18,100 + $188,000 when the investor sells the property at that
time.
(Check the correct answer.)

$271,100
$162,983
$168,669
$179,281
$269,908

Question 2

Multiple Answer

(1.0000 points)

Question:

Using discounted cash
flow analysis, what is the most an investor wishing to get at least a
10% return should pay for an investment expected to have the following
annual cash flows at the end of each year:
Year 1: $6,000
Year 2: $6,400
Year 3: $6,800
Year 4: $6,700
Year 5: $7,100 + $81,000 when the investor sells the property at that
time. (Check the correct answer.)

$113,495
$75,132
$68,302
$114,000
$70,560

Question 3

Multiple Choice

(1.0000 points)

Question:

Using the Ellwood
formula, estimate the required overall rate for an investor who is
expected to put down 20%, desires a 13% equity yeild, expects the
property to increase 7% during his/her 11 year holding period, and
expects to finance the balance of the purchase with a 30 year, monthly
payment loan at 9.00% interest.

.1020
.0988
.0945
.0956
.0877

Question 4

Multiple Answer

(1.0000 points)

Question:

Using the Ellwood
formula, estimate the required overall rate for an investor who is
expected to put down 25%, desires a 13% equity yeild, expects the
property to decrease 16% during his/her 10 year holding period, and
expects to finance the balance of the purchase with a 30 year, monthly
payment loan at 8.75% interest. (Check the correct answer.)

.0901
.0913
.0988
.1065
.1075

Question 5

Multiple Answer

(1.0000 points)

Question:

Using the Ellwood
formula, estimate the required overall
rate for an investor who is expected to put down 25%,
desires a 14% equity yeild, expects the property to
decrease 11% during his/her 9 year holding period, and
expects to finance the balance of the purchase with a 30
year, monthly payment loan at 10.25% interest.
(Check the correct answer.)