Answer Happy

Interest rate Initial Capital Number of years 2.83% 648074.00 9 Initial value flat 1 Initial value flat 2 Rent 1 Rent 2 Maintenance 1 Maintenance 2 Increase 1 Increase 2 Increase in maintenance 1 Increase in maintenance 2 (as % of rent increa: Taxes Increase in value 486056.00 162018.00 1125.00 675.00 56.25 37.50 4.00% 67.56 0.40% 6.50% 14.00% 1.83%
Task 1: Compute the Net Present Value (NPV) of the cash flow at the given Interest rate. (a) In the worksheet 'Cash flow and NPV”, create a table in which, for each flat, the following are displayed: monthly rental income, monthly maintenance costs, monthly tax payment, net monthly income, present value at time zero of net monthly income, for months starting from time zero to the end of the cash flow. For this task, the monthly payments of rent, maintenance and tax are all rounded to the nearest penny. Calculate the NPV of the income streams from flat 1 and from flat 2 separately. You can use the template if you wish. (b) Compute the net present value of the sale of the two flats together, after capital gains taxes. (c) Compute the net present value of cash flow for the investment project as a whole.