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Investment Planning 1 AS3001 Q3a

Discussion in 'Financial Planning Study Group' started by lilRed, 12th Sep, 2011.

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  1. lilRed

    lilRed New Member

    Joined:
    18th Feb, 2011
    Posts:
    2
    Location:
    Melbourne, VIC
    Hi,

    I was just wondering if the figures given by the rise in Rent income and Cash expenses in Year 2 and Year 3 had to be factored in when working out the PV.

    ie, Yr 1 $24,960 -$4,295
    Yr 2 $26,480.27 -$4,512.05
    Yr 3 $27,010.80 -$4,579.80

    Thanks in advance.
     
    Last edited by a moderator: 12th Sep, 2011
  2. Sarah_Kate24

    Sarah_Kate24 New Member

    Joined:
    23rd Feb, 2010
    Posts:
    3
    Location:
    Portland, Vic
    Anyone doing
    Investment Planning 1
    AS3002 Assignment>?

    Im about to send mine in and would like to look at a completed one to check if im on the right track - particularly with question 5.

    Email me @ Sarah.bryant@live.com.au

    Cheers - Any help would be greatly appreciated!!
     
  3. lilRed

    lilRed New Member

    Joined:
    18th Feb, 2011
    Posts:
    2
    Location:
    Melbourne, VIC
    Q5 is what I got the assignment back for. It needs quite a bit of detail.

    Does anyone know if the Q3a percentages from the Note need to be factored into the Rent income and Cash expenses before working out PV?

    Note: In year 2, rent income is expected to increase by 3% compared to year 1 and cash expenses are expected to increase by 2.5% compared to year 1. In year 3, rent income is expected to increase by 2.5% compared to year 2 and cash expenses by 2.0% compared to year 2.

    I'm not quite sure as they are 'expected' increases, and don't know whether they have already been factored in.
     
  4. squeak043

    squeak043 Member

    Joined:
    20th Sep, 2011
    Posts:
    5
    Location:
    SA
    Sorry about the late reply. I'm onto that question also. I believe they have factored it in as each increase is what they said it is.. Ie

    2.5% of 4295 = 107

    4295 + 107 = 4402 aka Year 2 Cash expenses...