Finance and Accounting Group Valuation Assignment Paper - 275 Words

Finance and Accounting Group Valuation Assignment Paper (Math Problem Sample) Content: Group valuation Assignment Executive summaryOver time now, Pennant Hills demography has changed leading to need for more housing considerations for tenants who wish to rent out rather than an apartment. It is in this view; we have taken an advisory for implementation from the local real estate agency-Pennant Estates Ltd-to build a granny flat owing to our small family. The granny flat will be a two bed roomed with a sitting room, a chimney-kitchen, and sizeable partitioned wash rooms given the space for a duo garage wont accommodate an extension of same. The costs of building comparable with the weekly returns of renting out our current house are welcome (realestate.com.au, 2015). Costs of constructionThe cost of construction is estimated at $69,567.00 with advertisements costs of $3,456 and maintenance costs and utilities will be estimated at $16,874.With an estimation of $ 89,897.00 as our initial cost, an estimated weekly tune of $1,090 as compared to having the hu ge lot with garage not maximizing open opportunities. This will include financing of a loan of $80,000.00 from the local bank with an interest rate of 9.8% P.A and own savings of $9,897.00.We shall assume a rate of return of 10% within 3 years for the project. My wife is in agreement with moving out to the granny flat upon finishing so as to rent out the current house of which with a short period, our cost incurrence former could have made a pay back. Return on InvestmentPennant Hill Family Initial Cost USD 89,897.00  USD 89,897.00  USD 89,897.00 Monthly cost USD 1,092.00  USD 1,120.00  USD 1,230.00 Annual Rate of Return USD 13,104.00  USD 13,440.00  USD 14,760.00 Bank loan cost USD 8,809.91  USD 8,809.91  USD 8,809.91 Return on Investment0.490.530.68Percentage48.74%52.56%67.54% Net Presen...