Initial Cost Assignment | Homework For You
June 8th, 2020
Research TWO different potential investments in real estate (Apartment, Villa, Office, Warehouse, Store, etc) in the UAE and collect the needed data for the investment through either online search or phone calls. Estimate the following:
1) Initial cost (Visit real-estate websites).
2) Useful life of the asset (Visit municipality or companies’ websites).
3) Operating and maintenance cost (annual or monthly).
4) Estimate the benefits such as rent, if applicable.
5) Visit website of a local bank to collect information on how to finance a real estate and 1. the finance cost of the investment. Discuss the based on the information, calculate the finance cost of the investment. Discuss une difference between the Flat and Reducing (Diminishing) interest rates.
6) Use MS Excel to calculate the present worth, annual worth and internal rate of return of each investment using a MARR of 10%.
7) Compare the two investments and recommend the best one.
8) Repeat Steps #5 and #6 using an MARR of 15%. Will a different MARR change your conclusion?
9) Calculate how much your finance charges if you decide to finance your loan through an Islamic Bank (Murabaha).
10) Discuss means to improve return of these investments.Get Finance homework help today