Consider a property with the following property level cash flows:

	NOI	Cash Flow
Y1	$100,000	$88,000
Y2	$102,000	$90,000
Y3	$104,040	$92,040
Y4	$106,121	$94,121
Y5	$108,243	$96,243

1. Assuming a sale at the end of Y3, the residual cap rate will be applied to what value?

2. Assuming an initial purchase price of $2.0M, what is the Y2 NOI return?

3. Assuming an initial purchase price of $2.0M, what is the Year 1 COC return?

4. Assuming an initial purchase price of $2.0M, what is the 5 year average NOI return?

5. Assuming a $2.0M initial purchase price and a 60% LTV interest only loan with a rate of 4%, what is the 3-Year average (levered) COC return?

6. Assuming a $2.0M initial purchase price and a 60% LTV interest only loan with a rate of 4%, what is the 3-Year UNLEVERED IRR assuming no sales costs and gross proceeds from sale of $2.3M?

7. Assuming a $2.0M initial purchase price and a 60% LTV interest only loan with a rate of 4%, what is the 3-Year LEVERED IRR assuming no sales costs and gross proceeds from sale of $2.3M?

8. Assuming a $2.0M initial purchase price and a 60% LTV interest only loan with a rate of 4%, what is the 3-Year UNLEVERED Equity Multiple assuming no sales costs and gross proceeds from sale of $2.3M?

9. What is the Property Value based on a 3-Year required UNLEVERED IRR of 11% and assuming no sales costs and gross proceeds from sale of $2.3M?

10. What is the residual/terminal cap rate based on $2.3M in gross proceeds for a 3-Year hold?