calculate year end expected income .

Table 1: Operational Net Cash Flow
			Year 0	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7	Year 8	Year 9	Year 10
Initial Cash Outlay	Note	($525,000.00)
Potential Revenue	a		$100,965.94	$102,480.42	$104,017.63	$105,577.89	$107,161.56	$108,768.99	$110,400.52	$112,056.53	$113,737.38	$115,443.44
	Less Vacancy or Turnover	b		($8,178.24)	($8,300.91)	($8,425.43)	($8,551.81)	($8,680.09)	($8,810.29)	($8,942.44)	($9,076.58)	($9,212.73)	($9,350.92)
	Less Management Fee	c		($25,746.31)	($26,132.51)	($26,524.50)	($26,922.36)	($27,326.20)	($27,736.09)	($28,152.13)	($28,574.41)	($29,003.03)	($29,438.08)
=	Net Revenue	d=a-b-c		$67,041.38	$68,047.00	$69,067.71	$70,103.72	$71,155.28	$72,222.61	$73,305.95	$74,405.54	$75,521.62	$76,654.44
	Less Depreciation	e
=	Income from Operations	f=d-e		$67,041.38	$68,047.00	$69,067.71	$70,103.72	$71,155.28	$72,222.61	$73,305.95	$74,405.54	$75,521.62	$76,654.44
	Less Interest Expense on Loan	g
=	Taxable Income	h=f-g		$67,041.38	$68,047.00	$69,067.71	$70,103.72	$71,155.28	$72,222.61	$73,305.95	$74,405.54	$75,521.62	$76,654.44
	Less Income taxes	i		($18,369.34)	($18,644.88)	($18,924.55)	($19,208.42)	($19,496.55)	($19,788.99)	($20,085.83)	($20,387.12)	($20,692.92)	($21,003.32)
=	Net Income	j=h-i		$48,672.04	$49,402.12	$50,143.15	$50,895.30	$51,658.73	$52,433.61	$53,220.12	$54,018.42	$54,828.70	$55,651.13
	Less Principal Payments	k
	Add back Depreciation	e		$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00
	Terminal Value	t											$522,247.28
=	Net Cash Flow from Project	l=j-k+e+t	($525,000.00)	$48,672.04	$49,402.12	$50,143.15	$50,895.30	$51,658.73	$52,433.61	$53,220.12	$54,018.42	$54,828.70	$577,898.41
	Discount		1.0000	0.9259	0.8573	0.7938	0.7350	0.6806	0.6302	0.5835	0.5403	0.5002	0.4632
	Discounted Cash Flow		($525,000.00)	$45,066.71	$42,354.36	$39,805.25	$37,409.57	$35,158.06	$33,042.07	$31,053.43	$29,184.47	$27,428.00	$267,678.78
	Accumulative Discounted Cash Flow	($525,000.00)	($479,933.29)	($437,578.94)	($397,773.68)	($360,364.12)	($325,206.05)	($292,163.98)	($261,110.55)	($231,926.08)	($204,498.09)	$63,180.69
	Net Present Value or NPV			$63,180.69
	IRR			9.78%
	MIRR			7.35%
	EVA=MIRR - Rate_RR			-8.00%
	Discounted Payback Period			11.0 years
	Note:
	Depreciation	e		($18,181.82)
	Interests	g		($17,375.00)
	Principal Payments	k		($2,670.50)
	Terminal Value	t		($522,247.28)

	Scenario A	Scenario B	Scenario C
Purchase Condo?	Yes	Yes	No
Funding 1) Inherent Cash	$ 300,000.00	$ 300,000.00	$ 300,000.00
Funding 2) Financing	$ -	$ 200,000.00	n/a
Funding 3) PEP Stock	Sell PEP	n/a	n/a
Net Present Value or NPV		$63,180.69
IRR		$0.10
MIRR		$0.07		<=Projected Return
EVA=MIRR - Rate_RR		($0.08)
Discounted Payback Period		11.0 years
Net income (Year 1)		$48,672.04		<=withdraw from annually return
Monthly Expected Income		$ 4,056.00