答案和详解如下： 3.Assume you are considering investing in an apartment building with the following estimated financial characteristics: §
Net operating income (NOI) = $64,000 §
Net operating income growth rate = 4% per year §
Tax depreciation = $25,000 per year §
Annual interest expense = $32,000 §
Annual debt service expense = $35,000 §
Equity investors marginal income tax rate = 36% §
Investment horizon = 2 years §
Net purchase price = $500,000
§
Equity investment = 30% §
Gross sale price = $650,000
§
Cost of sale = $50,000
§
Outstanding mortgage balance at time of sale = $385,000
§
The tax rate on recaptured depreciation = 28% §
Long-term capital gains tax rate = 20% §
Required after tax return on equity = 6% The NPV and IRR for this investment are closest to: A) $51,977 19% B) $61,095 27% C) $99,994 47% D) $288,905 33% The correct answer was B) Taxes Payable Computation: |
| Year-1 | Year-2 | NOI (g = 4%) | $64,000 | $66,560 | Less depreciation | (25,000) | (25,000) | Less interest | (32,000) | (32,000) | Taxable income | 7,000 | 9,560 | times tax rate | 0.36 | 0.36 | Income taxes payable | $2,520 | $3,442 |
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|
| CFAT Computation: |
| Year-1 | Year-2 | NOI (g = 4%) | $64,000 | $66,560 | Less debt service | (35,000) | (35,000) | Before tax cash flow | $29,000 | $31,560 | Less taxes payable | (2,520) | (3,442) | CFAT | $26,480 | $28,118 |
Equity reversion after taxes (ERAT) = net selling price – mortgage balance – taxes.
First, compute taxes.
Recaptured depreciation = 2 x $25,000 = $50,000 Tax on recaptured depreciation = $50,000 x 0.28 = $14,000
Total gain on sale = net selling price – adjusted basis Net selling price = sales price – cost of sale = $650,000 - 50,000 = $600,000 Adjusted basis = cost - accumulated depreciation = $500,000 - 50,000 = $450,000 Total gain = $600,000 - 450,000 = $150,000.
long-term capital gain tax = capital gains tax rate x (total gain - recaptured depreciation)
= 0.20 x (150,000 – 50,000) = 0.20 x 100,000 = $20,000
Total taxes payable = tax on recaptured depreciation + long-term capital gains tax = $14,000 + $20,000 = $34,000 ERAT = net selling price – mortgage balance – taxes. = 600,000 - 385,000 - 34,000 = $181,000 Relevant Cash Flows Year | 0 | 1 | 2 | EI* | -$150,000 |
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| CFATt |
| $26,480
| $28,118
| ERAT
|
|
| $181,000 |
*Equity investment
= 0.30 x 500,000 = $150,000 Using your TI BAII Plus: [CF] [2nd] [CLR WORK]
-150,000 [+/–] [ENTER] [↓ ]
26,480 [ENTER] [↓] [↓]
209,118 [Enter] (note: CF2 = 28,118 + 181,000)
[NPV] {6} [ENTER] [↓]
[CPT] = $61,095.41
[IRR] [CPT] = 27.23 percent | 
发表于 2008-5-21 11:38
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