Finance Assignment Help

Finance Homework Help

Students must approach assignments experts of finance. As finance assignments are not easy it consist of a different pattern, format and structure. The finance expert will tell the student to use the finance related keywords in their assignments.

Many students doesn’t know how to place the keywords. The experts help them to create the right keywords in different headings. The assignment must be completed with a proper conclusion and must show the impact. You must engaged a teacher or tutor with your assignments.

Table of Contents

What Is Finance Assignment Help?

What is financeThe finance assignments are mostly linked with the corporate industries and it is named as industry finance or business finance. Many experts and sites help students so that they provide different multidimensional methods. These methods will help a student to cover all the concepts of a subject.

Some students who have done bachelors in finance degree, when they entered into master degrees they are asked to do a project in which they analyze the finance and stock markets to make positive predictions in term of values.

After this research project he also make recommendations regarding the positive investments which will lead to profitability and sustainability for the organization.

Every student who is enrolled in finance degrees must clearly learn the concepts of finance. The students can seek financial homework helps from various writing experts which are at FinanceCourseHelp.com.


Here’s Is A Quick Overview Of Finance Assignment Help

Finance students can take help in their finance assignment and learn that it can be categorized in different ways. As a finance student you must get a help from qualifying expert in order to analyze the transactions of cash and recommendation on savings. Many institutions are required to provide the steps that how the company will react in bankrupt. Finance Business Management level preps you for a job in service, which might flex across any sort of field or even market.

The students use their different approaches in this case. The student will start identifying the crisis the company is facing and the reasons of crisis. They will analyze the corporate financial crisis and will make possible recommendations for their companies.

If your teacher and tutor have asked you to do a homework or projects at home? You might face some issues. With this little information, you may understand the definition of finance and its homework highlights. Finance is not that easy subject to study. It takes a lot of efforts and requires attention of students.

The student practice with tutors and teacher but at the end he attempts and manage the homework himself. Once we begin with the process of homework, we start it with a detailed discussion with our tutor, instructor or expert. The students must be sure about the assignment criteria and its requirements.

A student will use this opportunity as it will help them to understand each process which has to follow by them equally. The students have different ideas regarding the homework topic and they must share the opinions, theme, structure and anything else before making a choice.

When the teachers and lecturers allocate a topic on which students will worked, so before starting it we must share our opinions with them on current scenarios related to the topic. In this way you will not make any mistakes in your homework.



Categories Of Finance Assignment Help

  1. International Financial Management

    International financial management is the most common topic which is given to students to start any project.

    This concept is consider as liberalization. Globally many people want to start their own business in the world. Finance students can be those entrepreneurs who want opportunities even if they are not in their internal environment.
     

  2. Finance Homework and Assignment HelpFinancial Planning and Forecasting

    There is a lot of differences in financial planning and forecasting.

    The financial plan of a company layout the steps in sequence format, first the step starts with identifying the available capital and the requirements and need of assets in order to gain the profit.

    A financial plan defined as “the process of putting the right resources (labor, raw material and assets) to generate the maximum revenues and possible profits. Students who have this subject or course so they must buy a guidebook which will tell them the different financial positions and what can be done to meet the required goals.

    The plan covers all the aspects of financial life starting with investing and getting profit.

  3. Accounting Project Help

    This process is part of every accounting project. The students must know the working cash and capital flows of a company which they are studying. Remember the company must be international company.

    They can study their plans over a period of time and must analyze the expenses which are occurred during the period. This helps them learning new ideas to open different business and they can easily make projections whether to make investments on not.

  4. Bond Valuation

    Bond valuation is very important for finance student. The students through the prices of bonds, they evaluate the future price of bonds. If they have face value, coupon rate and market value in front of them then they can analyze the future rates of bonds.

  5. Investment Analysis and Portfolio Management

    Portfolio management is defined as the art and science of making decisions about investment according to the company policies. The aim of management is to create a matched between investments and the company objectives. It also includes the allocation of asset for organizations, individuals and institutions.

    The main purpose of portfolio management is to determine the strengths, weaknesses, opportunities and threats when the finance manager is making choice between its debt and equity, growth and safety and other trade-offs which are faced in an organization are managed to maximize the profit and minimize the loss ratio.

    Students who are enrolled in portfolio management assignment must pay close attention to market trends.

    All the external and internal environment impacts can positively and negatively make a change in financial activities.

    Finance Types

  6. Public Finance

    Public finance is the management of country revenues, debt and expenditures. These outcomes are from different government and quasi government institute. The students who are studying public finance this is the guide for them. They must know the components of public finance.

  7. International Flow of Funds

    International financial flows of funds take a variety of forms. One of the most important category is foreign direct investment. 
     

  8. Credit and Inventory Management

    In this topic the students are given cases that if a company want to produce certain units in numbers how much they will produce.

    The students must know the steps to manage the     credit which includes account receivables and payable, also they must know how to manage their resources to avoid scarcity faced by organizations.

  9. Cash and Liquidity Management

    Availability of cash in the organizations means that it has strong liquidity to pay off its debt and expenses that might occurred unexpectedly. If the manager doesn’t know that how much cash he must put in his bank and how much in his office, then he cannot manage the activities of the organization.

    It is very essential for a student to study this chapter thoroughly, and many students get assignments based on this topics. If your teacher ask you to do an assignment on your topic. You can select this topic.

  10. Working Capital Management

    Working capital management involves a cycle which starts with the management of assets that is cash. In this process, the finance manager operates and control the in-flows and out-flows of cash.

    The second step is raw material and inventory managing step. A finance manager has to give a company a detail explanation or presentations according to his financial projections that for how much profit the inventory of raw material will be taken to get a required profit.
  11. Business Valuation and Analysis

    Large companies hire finance advisors and institutes to evaluate for their current and new business. The owners never take part in this process, as only the perfect finance advice can be taken. If you are finance student, you must study the dept. of this homework. In this way you will be unable to evaluate the future outcomes of the business.

  12. International Financial Management Exchange Rate

    Experts and researchers always recommends finance students to keep an eye on the international exchange, currency and foreign rates. This is the most common topic choose by finance students which is easier than other topics, but it involves the current rates. If you are willing to choose this as mathematics assignment. 

    You must know the identification of exchange rates of different countries. Reading articles on “How exchange rate impacts on international business?” is a good option forstudents to do an assignment. The students must take a help from the teachers and experts so that they can evaluate what is better for them or how they can do their assignments. Coursework writing is one of the hardest tasks you are actually assigned. It is actually time-consuming and requires sizable history knowledge of the particular scholastic topic and all associated nuances.
  13. Principles of Behavioral Finance

    It is one of the theoretical form of study and it may require examples of different finance managers who are Behavioral finance  taken as an example so that a student can study on their behavior. Behavioral finance includes self-deception, emotional influences.

    Heuristic simplifications and social influences. These are the four factors which effects the finance manager. In self-deception, a finance manager might have difficulty in order to get the decision done. If it is not an informed decision, it will negatively impact the organization. Emotions play an essential role.

    If a finance manager has emotional intelligence, he will never make a wrong decision. The emotion changes the perceptions and states easily. If a manager is not in his emotional stat, he will find difficulty in making decisions for companies. We offer you professional help for your database assignment.
  14. There are different bias in Behavioral finance which includes
    Finance Homework & Assignment Help
    Self-Attribution Bias
    Over confidence Bias
    Confirmation Bias
    The narrative fallacy
    The Anchoring Bias​
As a finance student, he must have information and knowledge to overcome these Bias. If you are self-focused than these Bias will not affect you. There are two types of decisions process reflective and reflexive. Always remember, finance managers are focused on the process of the company not on the outcomes.

They will not only supervise but they will also communicate about the changes they are seeing in financial statements in fiscal year so they can make a right decision with reasons. If a decision is not a reason based or if the finance manager has failed to give the logical behind his financial projects than no one will show agreement. But if he goes with proper reasons and with impacts, only then his idea will be accepted.

Students studying finance homework must be enough competent to take part in all assignments and projects given by teachers and tutors to attain their degree. Students who are selecting topics for their assignments and projects can select here. If they will do practical implications on these studies only then they can fulfil the requirement of the assignments.

Never take these assignments for-granted. Always try to create new ideas, opinions and thoughts that will help you to build a strong portfolio of your assignments. 
 
Let’s take an example of Bond Pricing. The bond price is always equals to the present value of its expected value of cash flows. The discount rate in bonds chapter is consider as “yield to maturity”.

Common Problems While Writing Finance Homework

Finance Example

Examples of Finance Assignments

Example # 1: Nantucket Nectar

Problem Statement

Nantucket Nectars was founded by two universityfriends, Tom Scott and Tom First, in 1990. The primary organisation of the Nantucket Nectars company is to offer the fresh fruit juices, the idea of business came when Tom Scott recreated the peach juice which he had found during his journey to Spain.They decided to bottle their creation and offer them off their All serve boat. Our team has roped in effective and also centered forensic accounting homework assistants to handle all intricate concerns on schedule.

During their first year they sell 8000 cases of their renamed juices Nantucket Nectars, and 20000 the following year.Initially the business was funded by both good friends with their cumulative life savings, about $17,000 to finance outsider bottler agreement and inventory.

After two years $60,000 were invested by Mr. Mike Egan who was encouraged by both creators to invest, so that the undercapitalization scenario can be overcome.The founders Tom Scott and Tom First are now forming a decision to whether the Nantucket Nectars must be sold partly or totally, or need to remain independent.

The factor behind the issue is constant losses of Nantucket Nectars throughout 1990-1995, failure to sell via grocery stores where 55% of all new age drinks are being offered. Nantucket Nectars is currently offering just 1% through these supermarkets, unfavorable margins due to inefficient cost managing technique which has actually created scenario of disturbance amongst staff members for non payments of wages.
VALUATION OF NECKTEK NECTER USING FUTURE FREE CASH FLOW MODEL
YEAR 1997 1998 1999 2000 2001 2002
$(000s) $(000s) $(000s) $(000s) $(000s) $(000s)
EBIT 2025 4279 6964 6312 10633 14698
add: Depreciation 209 331 495 710 763 947
less: Changes in
working capital 3207 2237 3944 6402 8773 11731
less:Capital expenditure 350 488 656 861 1039 1222
Free Cash flows -1323 1885 2859 -241 1584 2692
discounting @10% 0.909 0.826 0.7513 0.683 0.62 0.5644
Diccounted FCF -1202.607 1557.01 2147.967 -164.603 982.08 1519.365
Value of Nenycket Necter 4,839.212

Recommedation

It is recommended that Nantucket Nectars' management must offer the company due to following reasons: Price Range

There are many methods to value the company.On the basis of the details given up the case study the assessment technique used are: PE ratio strategy.

Here is Example Excel Solution of Nantucket Nectar

Example # 2: Metallgiesseri Worms AG

Problem Statement

Metalgiesserei is a well-known company for producing the accuracy metals. The metal produced by the company is of high quality and is used in the vehicle aerospace and building equipments. The production of high quality metals helped the business to win coveted quality award from BMW and many other multinational and well-known car companies which improved the reputation of the business.

Its quality focusing techniques help to reduce in the rejection rate from the customers to 70 parts per million. The company signed up on the stock exchange in the year 1991 and the 55% shares among the outstanding shares of the company are anticipated to be held by the family of Mayer.

The managing director of the company is considering an expansion policy and wishes to replace the existing device with the automated maker, which has greater capability than the existing machine and it is also expected that it will also reduces the problems per million and will likewise enhance the quality of the parts.

The exact same sort of expansion items have actually currently been rejected by the board of directors due to the financial recession. The handling director of the business is considering that whether the growth project is financially viable for the company or not.
Existing Machine
Year 1 2 3 4 5 6 7 8
Cost 0.415807
Expected Sales 280 285.6 291 297 303 309 315 322
CGS 252 257 262 267 273 278 284 289
Labour Cost 0.335 0.345 0.356 0.366 0.377 0.388 0.400 0.412
Maintenance 0.004 0.0041 0.0042 0.0044 0.0045 0.0046 0.0048 0.0049
Electrcity Charges 0.0123 0.0127 0.0130 0.0134 0.0138 0.0143 0.0147 0.0151
Assumed medical claims per year 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Depreciation 0.069301167 0.06930 0.06930 0.06930 0.06930 0.06930 0.00000 0.00000
OCF 27.479 28.029 28.589 29.161 29.743 30.338 31.013 31.631
Add Back Dep 0.069301167 0.069301 0.069301 0.069301 0.069301 0.069301 0 0
Free Cash Flows 27.549 28.098 28.658 29.230 29.813 30.407 31.013 31.631
Residual Value 0.11
Tax 43% 11.846 12.082 12.323 12.569 12.819 13.075 13.336 13.649
After Tax CF 15.703 16.016 16.335 16.661 16.993 17.332 17.677 18.092
Tax Savings 0.0298 0.0298 0.0298 0.0298 0.0298 0.0298 0
Net CF -0.415807 15.7325 16.0457 16.3651 16.6908 17.0230 17.3617 17.6774 18.0924
DF 9.86%
NPV $12.66 $24.76 $36.00 $46.43 $56.12 $65.11 $73.44 $81.21
IF DF 13.34%
NPV $11.88 $69.36

Recommendation

By analysing the data mining of the case thoroughly, it is advised that the company ought to carry out the brand-new machinery as it would benefit the business by including a considerable worth in the business. It would improve the general effectiveness and the success of the business at a wide spread scale.

Here is Example Excel Solution of Metallgiesseri Worms AG


Exmple # 3: BCE Inc

Problem Statement

Bell Canada Enterprises (BCE) is a Canada based telecommunication business, which provides a variety of telecommunication services to service and domestic consumers throughout Canada. Those services include wire-line, wireless, long-distance, high-speed Web and satellite television.

The share cost of the BCE is presently undervalued in the market as it is not revealing the expected development in its revenues and even the general service. Currently the business is facing competition from the other crucial gamers such as the TELUS and the Rogers Communications (Rogers); they both are the key players in the telecommunication market and right now have entered into the quick growing and the high revenue margin location.

The in-depth computation of the value of the BCE has been performed in the DISPLAY and has been gone over in the analysis. The value of the business is $ 999, whereas the market cost per share is $ 40. Looking at this big difference, this can be said that the BCE is an attractive LBO target.
VALUATION OF BELL CANADA ENTERPRISES
*All assumptions are taken from the case
*All figures are in $ million except share price 2006 2007 2008 2009 2010 2011 2012
Total Revenue 29,003 29,438 30,145 30,838 31,393 31,989 32,597
EBITDA Margins 36.3% 37.5% 38.6% 38.6% 38.6% 38.6% 38.6%
EBITDA 10,528 11,039 11,636 11,903 12,118 12,348 12,583
Tax rate 15% 15% 15% 15% 15% 25% 25%
After tax - EBITDA 8,949 9,383 9,890 10,118 10,300 9,261 9,437
Plus: Depreciation 4,960 5,004 5,125 5,242 5,337 5,438 5,542
Less: CAPEX (2,646) (2,707) (2,755) (2,808) (2,862)
Less: Working capital (17) (28) (28) (22) (24) (24)
Free Cashflows 54,848 54,121 55,367 56,370 56,205 57,272
Discount rate 7.7% 7.7% 7.7% 7.7% 7.7% 7.7%
Discounted Free Cashflows 50,912 46,633 44,283 41,851 38,734 36,637
Growth rate 1%
Terminal Value 549,829
Value of the Buiness 808,879
Value of Non core assets:
Bell Aliant 2,659
CTV Globemedia 300
Clearwire & SkyTerra 530
Total Non core assets (3,489.21)
Net value of Business 805,390
No. of Shares 806.35
Value per Share 999

Recommendation

Bell Canada is an underestimated company as we have actually seen in our estimation that the worth of this organisation is $ 999 and the market price is the $ 40. The difference is an advantage. It is an appealing LBO target as this organisation has the possible to grow in the future; it has actually been one of the leading brands and still is in the Ontario and the Quebec.

There are organisation opportunities available which can be availed to grow in the future and to compete against the other significant gamers in the same market.

They can enter into the cordless market to get the major share of this market. In order to get the major share of this market, BCE has to increase its possessions and has to increase its competitive resources.

Here is Example Excel Solution of BCE Inc

Example # 4: The Second Cup

Second Cup, the largest network of Specialty chain stores, will launch its IPO (Going Public) in order to raise the amount to settle its long term debt, which was used to purchase the company.

Furthermore, the funds raised will be used to bring growth and acquisitions to the business. This financial obligation, which was utilized to purchase the company, was raised at a greater rates of interest.

Presently, the financial investment banker of the company is dealing with a problem that it will need to ascertain the true worth of the business. The company initially plans to raise $10 million, which suffices to pay off the long term financial obligation of $6.812 million and related party loans of about $0.818 million. The remaining amount can be utilized for future expansion.

On the persistence of financial investment banker partner, the business agreed to raise $14 million. Now the problem is what should be the timing of the concern.
Discounted Cash Flows $000
Analysts' estimates of growth rates
Estimated growth rate 0.0930
Estimated terminal growth rate 3%
Cost of capital 14.33%
Method 1: Using EBITDA as OCF
1993 1994 1995 1996 1997 Terminal Value
FCF 2573 4332.5 3791.37 4074.19 4383.2 38686.94404
Terminal Value at t=5
Discount factor 14.33%
NPV 51417
Value of Firm 51417
Minus Total liabilities (2013 data) ($M) 4512
MV of Equity ($M) 46905
Shares outstanding (M) 2572
Price per share ($) 18.2346526

Recommendation

The timing requires to be perfect, so that the problem is well gotten by the financiers and the company is able to receive the funds at an excellent price. Another problem is that it requires to be established concerning what need to be the voting rights patterns of the financiers. The company also needs to ascertain at what rate the IPO need to be priced.

Here is Example Excel Solution of The Second Cup

Example # 5: Island Foods, Inc

Proble Statement

The opening balance sheet for the month ended April 1, 1994 has actually been prepared in the stand out spreadsheet. As the data for the opening inventory and stock in process is not provided, for that reason, the existing assets has actually been assumed as the balancing figure in the stand out spreadsheet.

The earnings declaration, balance sheet and the capital declaration for the nine months ending December 31, 1994 has actually been prepared in the excel spreadsheet. The depreciation has actually been allocated for the nine months. As the lease is paid on a month-to-month basis for that reason, there would be no rent payable shown on the balance sheet as the property owner would have 0 lease receivable.
RATIOS
1994 1995
Profitability
Return on Sales 32% 33%
Return of assets 34% 49%
Return on equity 129% 139%
Liquidity
Quick Ratio 2.980 3.309
Current Liabilities to Cash flow from Operations 0.513 0.473
Solvency
Total debt to equity 2.770 1.836
Interest Coverage 0.118 0.066
Asset Management
Total asset turnover 1.088 1.506

Here is Example Excel Solution of Island Foods, Inc

Example # 6: Supply Chain Partners

Problem Statement

Virginia Mason is private non for profit company which is using healthcare centers in western Washington. The Virginia Mason is operating a center network with 336 licensed beds and the varieties of doctors who are working in the Virginia Manson are 400. It is a non for profit organization however the Virginia Manson made 665 million dollars revenue in the year 2007.

VM is practicing a Toyota Production system in order to be the marketplace leader and quality leader in the health care market. The VM staff members works in a group work and under the Toyota Production System they are working towards the improvements in processes and trying to decrease flaws at zero level.
Activity Levels 7-Jul 8-Jul
Sales 1,300,000 1,500,000
Lines 30,500 18,100
Orders 2,900 1,733
Deliveries 55 55
Days sales outstanding 3.47 3.58
SKUs 2,245 2,400
Days in Month 31 31
Annual Prime Interest Rate 8.25% 5.00%
Total Inventory allocated to VM in Seattle DC 2,200,000 2,700,000
Driver Rates
Receivable 145516 173226
Cost per line $0.55 $0.55
Cost per order $2.93 $2.93

Here is Example Excel Solution of Supply Chain Partners

Example # 7: Quebecor INC

It is a household founded service. The owner of this service is Chagnon household. The members of this family are company minded.

In the analysis of this report, the estimations of the Videotron have actually been supplied and talked about in information.

According to those computations provided in the Display and gone over in the analysis the deal price offered by the Rogers is an attractive price for the investors of the Videotron, whereas in the perspective of the Rogers this is not the right time to provide such an attractive deal due to the fact that the value of Rogers is under priced.
Forecasted Income Statement(working for DCF)
1999 2000 2001 2002 2003
EBIDTA $ 302,602.00
Growth Rate 11% 11% 11% 11%
Forecasted EBIDTA $ 302,602.00 $ 335,815.09 $ 372,673.59 $ 413,577.63 $ 458,971.22
Income Tax $ 24,167.00
Growth Rate 21% 21% 21% 21%
Forecasted Income Tax $ 24,167.00 $ 29,216.24 $ 35,320.43 $ 42,699.98 $ 51,621.34
NOPAT $ 278,435.00 $ 306,598.85 $ 337,353.16 $ 370,877.65 $ 407,349.87
Here is Example Excel Solution of Quebecor INC

Example # 8: Corporate Finance Project

The part of the company owned by experts in case of Excellent Year and CarMax is extremely low. The portion of the experts in both business is less than 1%, for that reason it is anticipated that the percentage of insider shareholders in both business is practically no.

On the other hand, the portion of experts in Cooper Tire & Rubber Co, which is a comparable company to Great Year Tire & Rubber Company, is 1%, while the percentage of experts at a Vehicle Nation business, which is a comparable company to CarMax, is 34%.

There could be many factors behind this difference, but the typical reason is that Excellent Year and CarMax have not provided shares to the staff members as their competitors have issued. The data of associated business is taken from the following links.
Name Year salary stock awards option awards Incentive Pension value All othe Compensation Total
Richard J. Kramer 2014 1,083,333 1,447,796 2,639,994 9,471,870 3,121,153 88,951 17,853,097
Chairman of the Board, 2013 1,050,000 925,415 2,640,000 13,965,003 538,440 71,642 19,190,500
Chief Executive Officer 2012 1,033,333 786,504 2,249,999 9,304,867 3,673,172 57,849 17,105,724
and President
Laura K. Thompson 2014 508,333 164,517 299,993 1,312,325 793,689 35,824 3,114,681
Executive Vice President 2013 321,667 1,007,100 318,918 1,510,735 26,908 43,692 3,229,020
and Chief Financial Officer
Darren R. Wells 2014 610,000 329,034 599,997 2,497,396 714,245 32,929 4,783,601
President, Europe, 2013 567,917 209,772 599,992 3,893,987 36,634 36,507 5,344,809
Middle East and Africa 2012 555,000 185,136 529,646 2,674,733 846,993 33,325 4,824,833
Gregory L. Smith 2014 541,667 262,885 479,391 2,017,088 311,328 33,291 3,645,650
Senior Vice President, 2013 525,000 733,545 479,397 3,136,143 190,138 26,635 5,090,858
Global Operations 2012 525,000 155,431 444,671 1,866,980 165,295 34,848 3,192,225
David L. Bialosky 2014 550,000 243,484 443,989 1,856,768 420,789 25,731 3,540,761
Senior Vice President, 2013 540,000 155,637 443,995 2,910,435 187,694 27,091 4,264,852
General Counsel and 2012 533,333 146,475 419,025 2,141,601 398,517 26,260 3,665,211
Secretary

Here is Example Excel Solution of Corporate Finance Project


Example # 9: Visa Inc.: Accounting For Marketing

Problem Statement:

Visa Inc. markets its product or services through media marketing in addition to through sponsoring well prominent events consisting of Olympics and FIFA world cups. This marketing technique assists the company to draw in the consumers of the business towards the brand name.

Moreover, it is also illustrated that the top management of the business has spent a large amount on marketing its services and products in the fiscal year 2013. This reveals that the leading management of the company extensively focuses on marketing its services and products.

The boost in marketing expenditures likewise increases the general profits of the business by a widespread margin. This additional illustrates that the top management of the company is doing marketing of its services and products effectively and efficiently, which is straight increasing the general revenues of the company along with the overall profitability of the business.
PROFITABILITY RATIOS
Time Period 9/30/2013 9/30/2012 9/30/2011 9/30/2010
Gross Profit 7239 2139 5456 4589
Sales Revenue 11,778.00 10,421.00 9,188.00 8,065.00
Gross Profit Margin 61% 21% 59% 57%
Operating Profit $7,239 $2,139 $5,456 $4,589
Sales Revenue 11,778 10,421 9,188 8,065
Operating Profit Margin 61% 21% 59% 57%
Operating Profit 7239 2139 5456 4589
Capital Employed 31621 32059 31309 29910
ROCE 23% 7% 17% 15%
Operating Expenses $4,539 $8,282 $3,732 $3,476
Sales 11,778 10,421 9,188 8,065
Operating expenses to Sales 39% 79% 41% 43%

Here is Example Excel Solution of Visa Inc.: Accounting For Marketing

Example # 10: A Basic Investment

The acquiring cost of the land is currently $ 2million and it can be sold after a period of eight years in $ 3million. This resale worth can be ensured with affordable assurance by one of the parties buying this land.

This is an extremely unrealistic view, as this statement is given without considering the costs and returns relating to the acquisition, holding and disposal of the land.

These generic costs relating to obtaining a home include the expense of deed preparation, the cost of transferring title, registration charges, expense of assessments, cost of realtor if any, providing cost if debt is included and other various expenses.

The other types of expense might be due to any dominating guidelines and restrictions applied by the government in a particular location, for example insurance expense, expense of land studies, maintenance expense, costs sustained to fulfill the pre-defined criteria, property tax, municipal charges, and so on.
Years
0 1 2 3 4 5 6 7 8
Purchase Price ($2,000,000)
Title and Closing Cost ($600)
Fencing Cost ($2,500)
Cost of Land Surveyor ($500)
Liability Insurance Cost ($253) ($256) ($259) ($262) ($265) ($269) ($272) ($275)
Property Appraiser Cost ($371.51)
Fees ($506.00) ($512.07) ($518.22) ($524.44) ($530.73) ($537.10) ($543.54) ($550.07)
Closing Cost ($330)
Sale Price $ 3,000,000
State Transfer Tax ($14,000)
Net Cash Flows ($2,003,600) ($759) ($768) ($777) ($787) ($1,168) ($806) ($815) $2,984,845
Here is Example Excel Solution of A Basic Investment

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