Create Financials for Endowment given the following information:

1. Endowment has a current value of 1 Billion, all are discretionary funds

2. A consultant is hired to make recommendations to investment committee. The consultant earns 5 basis points per year for services

3. Finance committee has costs of 30 basis points per year for salaries and record keeping

4. Budget cycle is July 1 to June 30

5. As a consultant, I am required to make forecasts for the next 1 year and 5 years

6. Endowment needs to generate $75 million in withdrawals for operating expenses. withdrawal amounts are expected to increase by the rate of inflation plus 250 basis points.

7. University needs to withdraw $20 million from endowment at the mid point of year 2 to build Medical School.

8. Endowment includes $60 million in real estate that has been donated and it generates net cash flows of 900 basis points of the value of the physical real estate per year