EXCEL 2010 Question?

Posted on 2014-04-11 11:15:00 in Computer-Science by LYNN P

Info:Greg Baer is the owner of E-Park Real Estate, a small real-estate company in Estes Park, Colorado. Greg is examining the finances involved with purchasing a large condo outside of Estes Park. E-Park Real Estate will hold on to the condominium for the next 10 years, receiving yearly income from rentals that will cover the expenses and will eventually pay back the cost of the initial investment. Greg wants you to calculate the return from this investment. He already created a worksheet containing the relevant financial data

The Investment Analysis worksheet contains a projected income statement and a cash flow statement. Greg entered the initial conditions of the investment. The cost of the condo is $325,000. For tax purposes, Greg plans to depreciate the condo completely over the 10-year period of the investment. At the end of the 10-year period, he plans to sell the condo for $425,000. Greg assumes a 34% tax rate on rental income and also on the income resulting from the sale of the condo in Year 10.



Question:

Enter the following information to calculate the total revenue generated:

a) In the range C11:L11, enter the yearly rental income for the condo, assuming that the income grows at a linear trend from $42,000 in Year 1 to $56,000 in Year 10.

b) In cell L12, enter a reference to the sales value of the condo already entered in cell B7.

c) In the range C13:L13, calculate the total revenue generated by the rental and sale of the condo from Year 1 through Year 10.

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