• Calculate the Gross Potential Income first
• Calculate then each year separate as the other items are a function of either the Gross Potential Income of Net Rent Revenue.
• After you calculate the income statement, complete the Net Present Value table. Use a 9% discount rate.
• In year five of the Net Present Value Table, calculate the residual value in the shaded box below the income statement.
• Use your calculator to calculate the Net Present Value.
• Then calculate the Internal Rate of Return. Remember to not use a discount rate.

\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{14}{|c|}{ Homework Project Without Debt } \\ \hline & & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & & \\ \hline \\ \hline & \multicolumn{2}{|c|}{ Number of Garden Apartmenti } & 225 & & & & & & & & & & \\ \hline & \multicolumn{2}{|c|}{ Average monthly rent. } & & & & & & & & & & & \\ \hline & \multicolumn{2}{|l|}{ Loss to lease CW of GPhil } & 2000 & & & & & & & & & & \\ \hline & & 800s & & & & & & & & & & \\ \hline & \multicolumn{2}{|c|}{ Miscelantovis incame (S of NRR] } & 400x & & & & & & & & & & \\ \hline & \multicolumn{2}{|c|}{ Erpense teimburnement [ K of Nan]) } & 400 & & & & & & & & & & \\ \hline & \multicolumn{2}{|c|}{ Operatine and leaning expervies os of haQ } & 43.006 & & & & & & & & & & \\ \hline & \multicolumn{2}{|c|}{ CAVXotovenent Alowance ( Y of NAR) } & 900 & & & & & & & & & & \\ \hline & \multicolumn{2}{|l|}{ Anent vowth per vear } & 2000 & & & & & & & & & & \\ \hline & & & & & & & & & & & & & \\ \hline & \multirow{2}{*}{\begin{tabular}{l} Purchase Price \\ Cap Rate: \end{tabular}} & & $11,20,630 & & & & & & & & & & \\ \hline & & & 1000s & & & & & & & & & & \\ \hline & & & & & & & & & & & & & \\ \hline & \multicolumn{2}{|c|}{ Calulate the annual cest for the first wean! } & & & & & & & & & & & \\ \hline & & & & & & & & & Dacount ane & 200% & & & \\ \hline & inimfermat & & & w2 & wi. & 4 & nes & & & & & & \\ \hline & \multicolumn{2}{|c|}{ Gous Putendal keme (Sh1) } & & & & & & & 0 & 0 & & & \\ \hline & Leis bas to leaie & & & & & & & & 1 & e. & & & \\ \hline & \multicolumn{2}{|c|}{ Les vasany, collectiem k consessians } & & & & & & & 3 & 8 & & & \\ \hline & \multicolumn{2}{|c|}{ Nist liest Aeverue [NhW] } & a & & of & 8 & a & & 3 & 8 & & & \\ \hline & \multicolumn{2}{|c|}{ Add miscolleneons ncome } & & & & & & & 4 & 0 & & & \\ \hline & \multicolumn{2}{|c|}{ Adt expence remburnenents } & & & & & & & 5 & 0 & & 0 & 9 \\ \hline & \multicolumn{2}{|c|}{ CHective gous income (16)} & & a & ef & 0 & 0 & & & & & & \\ \hline & \multicolumn{2}{|c|}{ Leis esefating expensei } & & & & & & & & & & & \\ \hline & \multicolumn{2}{|c|}{ Net Operatine incame (Noi) } & 0 & & o. & 0 & 0 & & NIV = & & & & \\ \hline & \multicolumn{2}{|l|}{ Leas annual detat sevices } & 0 & 0 & e. & 0 & 0 & & ink : & & & & \\ \hline & Lu Capes/mesoce A & Alowkere. & & & & & & & & & & & \\ \hline & Betere Tas Cath flow & (sino) & 0 & 0 & 9 & 0 & 0. & & & & & & \\ \hline & & & & & & & & & & & & & \\ \hline & & Sel price Cap hate (NoVCX) & 9.50s & & & Sales Price & 0 & & & & & & \\ \hline & & Sales comrission & 5con & & & & of & & & & & & \\ \hline & & Miras bark debe & & & & & o. & & & & & & \\ \hline & & Net to seller & & & & & 0 & & & & & & \\ \hline & & Sotrinumine Neramerean & ameres. & & & & & & & & & & \\ \hline \end{tabular}