Management is considering acquiring new office space by purchasing Zone A property which would cost $5,000,000 to buy today. It has been estimated they could sell the Zone A property in 8 years for $8,500,000. They will have to take a loan and pay an interest rate of 7.5% on that loan. a. What is the Present Value of the sale proceeds from the Zone A property? b. Should the fund purchase the Zone A property and if so, why? The health fund realize they could rent out part of the one A property that is surplus to requirements and receive rent of $350,000 per year. d. Should the fund purchase the Zone A property with rent and if so why? They receive a new offer of another building, the Zone B property but with slightly different conditions. The Zone B property could be sold in 6.5 years, but they would receive $1,000,000 less than the Zone A property f. Which is more attractive, the Zone A property (with rent) or the Zone B property? The health fund has surplus funds available of $3,000,000 and can invest the funds earning 8% per annum i. The Zone A Property ii. The Zone B Property Purchase Evaluation (100 points) Management is considering acquiring new office space by purchasing Zone A property which would cost $5,000,000 to buy today. It has been estimated they could sell the Zone A property in 8 years for $8,500,000. They will have to take a loan and pay an interest rate of 7.5% on that loan. a. What is the Present Value of the sale proceeds from the Zone A property? b. Should the fund purchase the Zone A property and if so, why? The health fund realize they could rent out part of the one A property that is surplus to requirements and receive rent of $350,000 per year. d. Should the fund purchase the Zone A property with rent and if so why? They receive a new offer of another building, the Zone B property but with slightly different conditions. The Zone B property could be sold in 6.5 years, but they would receive $1,000,000 less than the Zone A property f. Which is more attractive, the Zone A p
roperty (with rent) or the Zone B property? The health fund has surplus funds available of $3,000,000 and can invest the funds earning 8% per annum a. How long would it take for them to have enough money to purchase outright ii. The Zone A Property iii. The Zone B Property The health fund finds it only has $2,75,000 to invest but can utilize an alternative investment and earn 9.5% per annum iv. The Zone B Property You must show all your calculations for credit. Your calculations for this assignment must be submitted as a separate Excel file. Prepare a PowerPoint presentation outlining all these scenarios and be sure to highlight the importance of the time value of money as one of the considerations. Make a recommendation as to which scenario you feel is the best option and outline your reasoning for that determination. Also, explain if you consider there may be other factors that should be considered. The PowerPoint presentation must meet the following structural requirements. In addition to the slide presentation, submit the Excel spreadsheet with your calculations. Your presentation should meet the following structural requirements: The health fund finds it only has $2,75,000 to invest but can utilize an alternative investment and earn 9.5% per annum iv. The Zone B Property You must show all your calculations for credit. Your calculations for this assignment must be submitted as a separate Excel file. Prepare a PowerPoint presentation outlining all these scenarios and be sure to highlight the importance of the time value of money as one of the considerations. Make a recommendation as to which scenario you feel is the best option and outline your reasoning for that determination. Also, explain if you consider there may be other factors that should be considered. The PowerPoint presentation must meet the following structural requirements. In addition to the slide presentation, submit the Excel spreadsheet with your calculations. Your presentation should meet the following structural requirements: