1.If the leases (GPI) above were actually NNN flat leases (instead of the 3% graduated leases as shown) with no vacancy and no operating expenses such that both the EGI and the NOI were $162,000 per year for each of the 5 years, what would be the future value of the five NOI flows (only...no reversion) at the end of year 5 if your compounding rate / opportunity cost was 10% ?

1 2 3 4 Potential Gross Income (PGI) $180,000 $185,400 $190.962 $196.691 $202.592 - Vacancy and Collection Loss 18,000 18,540 19.096 19,669 20.259 Effective Gross Income (EGI) 162.000 166,860 171.866 177.022 182,332 - Operating Expenses (OE) 64,800 66,744 68.746 70,809 72.933 - Capital Expenditures (CAPX) 8,100 8,343 8,593 8,851 9,117 = Net Operating Income (NOD) $89,100 $91,773 $94 527 597,362 $100.282 Debt Service (DS) 58.444 58,444 58.444 58.444 58.444 = Before- Tax Cash Flow (BTCF) $30.656 $33,329 $36,082 $38,918 $41,839 - Tax Liability (TAX) 7.645 8,658 9,708 10.798 6.951 After- Tax Cash Flow (ATCF) 23,011 24,671 26.374 28. 1 19 34.887 The Reversion Sales Price $1,033,000 - Selling Expenses - 58,300 REV I1/20/TS =Net Sales Proceeds 974,700 - Remaining Mortgage Balance -631,026 =Before Tax (Equity) Reversion 343,674 - Taxes Due on Sale - 32,032 = After Tax (Equity) Reversion $311,642