Suppose that an industrial building can be purchased today f…

Suppose that an industrial building can be purchased today for $140,000.00. If it is expected to produce cash flows of $14,000.00 for each of the next 6 years (assume CFs are received at the end of each year) and can be sold at the end of the fifth year for $165,200.00, what is the internal rate of return (IRR) on this investment?

Suppose that an industrial building can be purchased today f…

Suppose that an industrial building can be purchased today for $230,000.00. If it is expected to produce cash flows of $23,000.00 for each of the next 9 years (assume CFs are received at the end of each year) and can be sold at the end of the fifth year for $292,100.00, what is the internal rate of return (IRR) on this investment?

Given the following information about a fully amortizing loa…

Given the following information about a fully amortizing loan, calculate the effective borrowing cost. Loan Amount: $180,000.00 Term: 18 years Interest Rate: 5.00% compounded monthly Monthly Payment: $-1,265.46 Discount Points: 4 Other Closing Expenses:  $1,000.00

A mortgage calls for monthly payments of $[d], including int…

A mortgage calls for monthly payments of $[d], including interest at [b]% compounded monthly.  The current value of the mortgage is $[c].  Approximately how long will it take to fully amortize the mortgage (in months)?   Reminder:  Fully amortize means at the end of the loan period the borrow owes $[a].

Given the following information about a fully amortizing loa…

Given the following information about a fully amortizing loan, calculate the effective borrowing cost to the owner (EBC). Loan Amount: $140,000.00 Loan Amortization Term: 14 years Interest Rate: 4.00% compounded monthly Monthly Payment: $-1,089.68 Discount Points: 3 Other Closing Expenses:  $2,500.00 Assume the owner pays off the loan early at the end of year: 4