Hi I am just learning about DCF. Are there any basic spreadsheets for this topic?
Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga.
Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus.
Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
Need Formaula help for Discounting a Partially Amortized Loan: I am as seller, unable to sell my waterfront cottage, will consider an STB for $180,000 at 6% amortized over 25 years. I
feel this strategy will make my property more saleable and attract potential buyers. Financing through traditional sources
is extremely difficult given the property’s distant location, unique design, age, lack of services and limited market appeal. I plan to sell the mortgage prior to closing, but needs a cost estimate concerning the discount. A local mortgage
broker advises me that a private investor knowledgeable in that particular cottage area would seriously consider
the mortgage, but requires an 11% yield.
To establish what the potential lender will pay (present value based on 11% yield), the mortgage must be discounted
at 11%. In other words, the face amount must be reduced in order to increase the overall return from 6% to 11%.
Scenario 2: Assume that the my mortgage was based on a 5-year term, with the investor’s yield expectation
remaining the same. The cost of sale would be reduced significantly given a balloon payment
at end-of-year five (EOY 5). The outstanding balance at the end of year five is $161,706.07. Alter the amortization of the mortgage to 60 payments (five years) Please provide a maths formula for the present value calculated is $147,933.18 with my cost now at $32,066.82 (180,000–
147,933.18). If I had limited the term to two years, the present value would rise further
to $164,679.43 with Seller cost at $15,320.57 (180,000–164,679.43).
I don't know how my HP is calculating PV as present value calculated is $147,933.18, any idea , please guide me via formulas and hints. I love to have formulas. Thanks