Which of the following conflict style do couples that discus…
Which of the following conflict style do couples that discuss their differences openly in a civil and cooperative manner have?
Which of the following conflict style do couples that discus…
Questions
Which оf the fоllоwing conflict style do couples thаt discuss their differences openly in а civil аnd cooperative manner have?
This essаy questiоn is wоrth 50 pоints in totаl. In this question, we аre examining a multifamily property: Peachtree Walk Townhomes, for sale as shown in the attached.pdf. A client is deciding what price to offer to the property and plan to hold it for 5 years and earn at least 9% per year. You should be able to find most of the needed information from the Offering Memorandum. If you can't find the needed information, you can use the following extra information: The client plans to hold the property for 5 years; The discount rate associated with the property is estimated to be 9%; The Terminal rate is estimated to be 8%; The selling cost is given as 6%; There are 16 units, with average unit size of 1,860 sqft. The current average monthly rent is $2450 per unit; The lease term is 1 year; The average market monthly rent is estimated to be $2500 per unit; The average market rent is expected to increase by 3% per year; There is no laundry income expected; The market vacancy rate is expected to be 8%; The credit loss rate is expected to be 4%; The real estate taxes is given as $54,400 per year and expected to increase by 3% per year; The office expenses are estimated to be $1,000 per year and expected to increase by 3% per year; The insurance cost is estimated to be $4,000 per year and expected to increase by 3% per year; The repairs and maintenance expenses are estimated to be $10,000 per year and expected to increase by 3% per year; The advertising expenses are estimated to be $5000 per year and expected to increase by 3% per year; The management fee is estimated to be 8% of EGI per year for every year; The utilities expenses are estimated to be $3000 per year and to increase by 3% per year; The other miscellaneous expenses are estimated to be $1,000 pear year and to increase by 3% per year. If you need any other assumptions, please list them explicitly either at the end of your template or in the text field. Based on your calculations: a) What is the maximum price to offer? (20 points, hint: You can use "Goal Seek" function of Excel to solve this. ) b) What is the implied change in value for the property over the 5-year holding period? (10 point) c) What is the capitalization rate of the investment with this offer price? (10 points) d) What is the Net Present Value of this investment with this offer price? (5 points) e) What is the Internal Rate of Return (IRR) for the 5-year investment horizon? (5 points) If you have used the Excel Template file, please upload your finished Excel file at the end of the exam for this question. If you haven't used the Excel file, you can also type your answer for this question in the text field.