Assignment II. Investment and exploitation
Answer sheet
Student name:
Cristian Larisa-Elena
Student number:
1778579
Important note:
Please indicate amounts with two decimals only, example € 23,35
Please fill in the answers on the sheets, they will become visible in this answer sheet automatically
Questions
1. What is the Net Present Value of the basic scenario?
2. What is the amount of the (un)profitable part of the investment of this dwelling?
3. What can you conclude based on this (un)profitable part?
4. Consider the (un)profitable part to be € 0,-. What is the maximum investment amount in that case? Use again an exploitation perio
[Be aware that this question asks the investment costs only. The model does not adapt the building costs and additional costs accordi
assignment. But of course in the actual situation these would change as well.]
5. The building costs are € 560,- / m3 (cubic meter). How many m3 can you build?
6. Considering the given dwelling characteristics, how many floors has this dwelling?
7. What is the result of the (un)profitable part if you decide to decrease the discount rate to 2,5%?
8. If the discount rate is decreased to 2,5%. What is the (basic) rent that needs to be collected to realize an unprofitable part of € 0,- t
9. What is the consequence for the (un)profitable part if the exploitation period becomes 50 years and the rent is increased to € 1050
10. If you sell the dwelling at the end of year 25 for € 439.000, what is the NPV?
, Answers
€ 216,164.13
-€ 157,785.87
Since it is an unprofitable situation, the landlord would lose € 157835.87
€ 216,164.13
482.14
3.56
-€ 62,354.96
€ 1,054.55
Now the landlord would make a profit of € 160,747.80
€ 316,167.68