Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: The table below shows the projected net cash flows [including reversion] for Property A & Property B. If both properties sell at fair market value for a cap rate [initial and terminal net cash yields] of seven percent, then which of these two properties is perceived to be riskier by the market? describe your answer.

Annual net cash flow projections for two properties ($1,000,000s):

Year:

1

2

3

4

5

6

7

8

9

10

A

$1.0000

$1.0000

$1.0000

$1.0000

$1.0000

$1.0000

$1.0000

$1.0000

$1.0000

$15.2857

B

$1.0000

$1.0200

$1.0404

$1.0612

$1.0824

$1.1041

$1.1262

$1.1487

$1.1717

$18.6093

 

 

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M916485

Have any Question? 


Related Questions in Basic Finance

1 how is the national guard deployed to assist in response

1. How is the National Guard deployed to assist in response to a disaster? 2. What is the role of first responders when a routine " minor disaster " occurs in a local community? 3. What drives the actions of local first ...

A simple random sample of 120 men results in a mean of 80

A simple random sample of 120 men results in a mean of 80 beats per minute, and a standard deviation of 11 beats per minute. Based on the sample results, the researcher concludes that the pulse rates of men have a standa ...

Analyze the long-term debt of general electric company

Analyze the long-term debt of General Electric Company (ticker: GE), General Motors Corp. (GM), and Ford Motor Company (F) relative to total assets over the last ten years. How has long-term debt changed over this period ...

A certain loop requires 5 loads 7 stores and 8 arithmetic

A certain loop requires 5 loads, 7 stores, and 8 arithmetic operations. What is the minimum initiation interval for a software pipelining of this loop on a machine that executes each operation in one clock tick, and has ...

1 should demand characteristics be eliminated or

1. Should demand characteristics be eliminated or strengthened in an experiment? Explain. 2. How do researchers detect and eliminate placebo effects? 3. What effect does error variance have on the results of an experimen ...

1 identity theft tactics name and explain at least three

1. Identity Theft Tactics. Name and explain at least three tactics used by identity thieves to obtain information. 2. Identity Theft. Can identity theft occur through legitimate access to your personal information? Expla ...

Explain how the repurchase agreement plays a role in the

Explain how the repurchase agreement plays a role in the pricing of futures contracts. What is the implied repo rate? Identify and explain some factors that make the execution of stock index futures arbitrage difficult i ...

1 what is the relationship between the price of a financial

1. What is the relationship between the price of a financial asset and the return that investors require on that asset, holding other factors constant? 2. Define the following terms commonly used in bond valuation: (a) p ...

1 what is the role of finance in a strategic plan2 what are

1) What is the role of finance in a strategic plan? 2) What are operating and financial plans? Please elaborate

Use the same information as in problem now assume a loan

Use the same information as in problem. Now assume a loan for $1.5 million is obtained at a 10 percent interest rate and a 15-year term. a. Calculate the expected IRR on equity and the standard deviation of the return on ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen