Discount Realty
Business rate discount plan 2
PART ONE:
A.
When the discount rate is 6%
PV = Future value / (1 + r) t
Where r is the discount rate and t is the time during the year
PV = 5000 / (1 0.06) 1
PV = 4716.98
When the discount rate is 5%
PV = 5,000 / (1 +0.05) 1
PV = 4761.90
B.
An account of $ 3,000.00 per year interest rate 4%
PV = 3000 / (1 0.04) 1
PV = 2884.62
Account B $ 8,600.00, two years. Both accounts earn 4% interest
PV = 8600 / (1 0.04) 2
PV = 7951.18
C.
We use the formula:
PV = cash flow / (1 + r) t
Where r is the discount rate and t is time in years
Discount 8%
year
rate
current value
1
32,000,000
8%
29,629,629.63
2
62,000,000
8%
53,155,006.86
3
89,000,000
8%
70,651,069.45
Discount rate 6%
year
rate
current value
1
32,000,000
6%
30,188,679.25
2
62,000,000
6%
55,179,779.28
3
89,000,000
6%
74,726,116.19
Discount rate 4%
year
rate
current value
1
32,000,000
4%
30,769,230.77
2
62,000,000
4%
57,322,485.21
3
89,000,000
4%
79,120,675.92
Analysis up with different discount rates, it is clear that the higher the discount rate is higher than the current value, the higher the discount rate then lower the present value of years, this means that investors need less when the discount rate is higher and will be required to invest higher amounts when the discount rate is low.
Part II:
Business Plans:
We have three business plans that include ice dreams, Wagner Realty Associates and Interstate Travel Plan School Plan, the Plan Ice Dreams is an analysis of the possible activity of selling soft drinks, the investment required is 10,000 and cash flows for the three years was 24,000, 36,000 and 50,000. assumed interest rate is 13.50% and 42000 to be assets acquired through a loan.
Wagner and Associates Realty plan is an analysis of the real estate business that require capital of 60,000 and an investor will invest two 20,000 and the remaining 10,000 will be financed by a loan, the interest rate is 10% technical. The market size is expected to grow by 3% over the years and the net value of the company should be 193,211.
Interstate Travel Center plan a business plan that requires capital 2.75 million, 2.5 million in capital will be financed by a loan and 250,000 is what the investor to invest. The market must have an average of 3.63% growth and labor costs are expected to 481,672 per year, but the benefits tend to be high.
The business plan with the greatest risk is the Interstate Travel Center Business Plan, the first reason that contains the biggest risk is that the investor is required to invest 250,000, which is a high amount compared with the other two plans. The plan to lower the risk of ice dream plan because it requires only 10,000 of investment.
On the current value and returns, it is clear that the current value of Plan Ice Dreams is clear that the cash flows for the three years was 24,000, 36,000 and 50,000 and the expected discount rate is 13.5%, which means that the current value of the investment is:
year
rate
This value
0
-10,000
1
24,000
13.5%
21,145.37
2
36,000
13.5%
27,945.43
3
50,000
13.5%
34,196.56
As calculated above summarizes the present value of the business plan, the discount rate applied is 13.5% and the current value shows that this is a good investment option.
For travel between the investor will have to increase 250 thousand, this plan shows that there are high costs and no plan of expected cash flows, so that an investor should not participate in an activity value of very little information about the benefits package and yields.
References:
Sample Business Plan (2008) business plan dream ICE Retrieved on September 25
Sample Business Plan (2008) J Wagner and Associates Realty plane, retrieved September 25
Sample Business Plan (2008) Plan Interstate Travel Center, retrieved on September 25
About the Author
Author is associated with SuperiorPapers.us which is a global Research Papers and Term Papers Writing Company. If you would like help in Research Papers and Term Paper Help you can visit Term Paper Help, Non-Plagiarized Essays and College Essays.
Texas Discount Realty Main
|
|
60 Minutes – 6% (May 13, 2007) $17.95 Airdate: 05/13/07 The 6 percent sales commission has always been sacrosanct for realtors — adding up to $60 billion in commissions this year. Much to traditional realtors’ dismay, change is coming. Online real estate discounters such as Redfin have moved in, charging significantly less for helping people buy and sell their homes, and even offering rebates. While some realtors are fighting back w… |
|
|
GTF Chromium 200mcg – 200 – Capsule $13.56 GTF CHROMIUM 200 mcg. Vcaps Available in easy-to-swallow vegetable capsules for maximum assimilation and absorption. 200 Capsules… |
|
|
Samsung Reality SCH-U820 Phone, Piano Black (Verizon Wireless) $299.99 Verizon Samsung u820 Reality Black MEDIUM… |
|
|
Wal-Mart realty busy recycling ‘dark’ stores.(commercial real estate ): An article from: Arkansas Business $5.95 This digital document is an article from Arkansas Business, published by Journal Publishing, Inc. on September 15, 2003. The length of the article is 1866 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsT… |
|
|
Colonial Realty.(Connecticut): An article from: Real Estate Weekly $9.95 This digital document is an article from Real Estate Weekly, published by Thomson Gale on October 24, 2007. The length of the article is 583 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Colonial… |