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Please use Excel and show functions as well as results 4. An investor...

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Accounting

Please use Excel and show functions as well as results

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4. An investor is considering the acquisition of a "distressed property" which is on Northlake Bank's REO list. The property is available for $200,000 and the investor estimates that he can borrow $160,000 at 8 percent interest and that the property will require the following total expenditures during the next year: Inspection $ 500 Title search 1,000 Renovation 13,000 Landscaping 800 Loan interest 12,800 Insurance 1,800 Property taxes 6,000 Selling expenses 8,000 a. The investor is wondering what such a property must sell for after one year in order to earn a 20 percent return (IRR) on equity. What other issues must he consider? Page 221

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