Mock Exam (Not Assessable)
Started: Oct 19 at 16:27
Quiz Instructions
Dear 16642 students
As discussed in lecture 7 on 12 October 2020, the idea of this mock exam is to provide an opportunity to practice and familiarise yourself with the online exam environment including built-in functionalities in Canvas so that you are better prepared for your final examination on 9 November 2020 (between 12:30pm and 4:30pm AEST time). The formula sheet is attached for your reference.
Please be advised that this exam will not be marked and the questions in the mock exam have been drawn from previous lecture notes and tutorial questions.
Note: this is a timed quiz. You may check the remaining time you have at any point while taking the quiz by pressing the keyboard combination SHIFT, ALT, and T… Again: SHIFT, ALT, and T…
Top of Form
Question 12 pts
Part A (Q1)
The present full costs associated with replacing strata buildings is $1,000,000. Estimate the future costs of replacing the buildings where the rate of interest is 7% pa compounded annually and the term is 3 years.
Group of answer choices
Question 22 pts
Part A (Q2)
Your client needs to budget for the replacement of a roof in four years at a projected future cost of $900,000. Your client instructs you to use a rate of 5% pa compounded annually. How much should be invested now?
Group of answer choices
Question 32 pts
Part A (Q3)
Which of the following is not a basic component of any compounding problem?
Group of answer choices
Question 42 pts
Part A (Q4)
If there is compounded monthly at a nominal annual rate of 12% p.a., what is the effective interest rate?
Group of answer choices
Question 52 pts
Part A (Q5)
Assume that you wish to accumulate a sum of $250,000 in five years at an interest rate of 4% per year. What is the necessary payment at the end of each month?
Group of answer choices
Question 62 pts
Part A (Q6)
If you invest a sum of $15,000 every year for 15 years at 4% pa compounded annually, how much will you have at the end of 15 years?
Group of answer choices
Question 72 pts
Part A (Q7)
You can purchase a property which returns $50,000 per annum. If investments similar to this one reveal, on analysis, a return of 8.5% pa compounded annually. How much should you pay for it, if the return was only available for 20 years?
Group of answer choices
Question 82 pts
Part A (Q8)
If you invest $30,000 at the beginning of each year for 5 years, at 6.5% pa compounded annually, how much will you have at the end of 5 years?
Group of answer choices
Question 92 pts
Part A (Q9)
An investor receives a net rental of $24,500 at the beginning of each year from a commercial property for the next 12 years. What would the investor pay for the right to receive this amount if a return of 5.75% pa is required?
Group of answer choices
Question 102 pts
Part A (Q10)
A company is considering expenditure for a capital project with an initial cost of $10,000,000. It is expected to return annual cash inflows for the next three years as shown below. The company requires a 10% target return. Calculate the NPV and comment whether the company should proceed with the project?
Net Cash Flow | |
Year 1 | $3,500,000 |
Year 2 | $2,000,000 |
Year 3 | $7,000,000 |
Group of answer choices
Question 1110 pts
Part B (Q1)
You have recently sold your apartment building for $500,000. It was purchased for $400,000 five years ago. You have taken depreciation deductions of $18,462 per annum. The unpaid mortgage balance is $325,000. Your marginal tax rate is 30%.
Question 1210 pts
Part B (Q2)
Describe two concepts of value (Investment Value and Market Value) and describe the relationship between these two values
Question 1315 pts
Part C (Q1)
Question 1415 pts
Part C (Q2)
Your client is looking to expand their existing operation and is in the process of considering whether should acquire or lease a new premise. You have been engaged to provide advice whether they should purchase or lease based on the following term sheets received.
Acquisition
What is the net present value and internal rate of return if your client acquires the property above. Please show all your workings.
Question 1515 pts
Part C (Q3)
Your client is looking to expand their existing operation and is in the process of considering whether should acquire or lease a new premise. You have been engaged to provide advice whether they should purchase or lease based on the following term sheets received.
Acquisition
Lease
What is the net present value and internal rate of return if your client leases the property. Please show all your workings.
Question 1615 pts
Part C (Q4)
Identify and explain the benefits and risks associated with investing in industrial real estate assets.
We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.
At homeworkcheg.com, You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreThe Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.
Read moreThe Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.
Read moreThe Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.
Read moreBy placing an order with at HomeworkCheg, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.
Read more