FIGURE 1.1 Prese Value of Om Property Varios Constant 2.000.000 Total Cash Flow Total Discounted at ON Discounted at LOON Discounted at 8 DON Discounted at 12.00 $57,423,017 $43.364457 Year 1 Year 3.000.000 100.000 3,370,00 2,912,621 2.997.455 3.054,760 2.777,778 2.1 2.675 2612571 2.535.077 2.199,269 3.573.048 1.11.07 2.626,297 2,270, 717 Px.cated style Yeart Discounted at 0.00% Discounted at 100 Discounted at 8 DON Discounted at 12.00% Present Value $57 423,017 54.364457 S913,190 $32,557,25 3.000.000 2,912,621 2.777,778 2,678,571 Present Value of Cash Flow Year 2 Years Year 4 3.180,000 3,370,000 3,573,048 3,084,760 1174,607 2.726,337 2.675.850 2.626, 297 2.535.077 2,399.269 2,270,737 3.787 431 40511 267,071 3124 2.577.562 25.5.20 2.149.090 20.524 50 NPV aldated Present w Discounted at 0.00 Discounted at 3.00 Discounted at 8.00% Discounted at 12.00 Present Value 557,423,017 $49,364,457 $18.913,190 $32,557.251 Online Companion Hands On: Go to Textbook.GetREFM.com/toc/ and select the link for the Online Companion to Chapter 1. Scroll down to the Excel Figures section and download the Excel file and open it. Take note of the Assumptions provided at the top of the Figure 1.1 tab, formatted in bold blue font. The convention of formatting assumptions this way will be observed throughout the Online Companion Enter 3,000,000 in cell E15 for the Year 1 Annual Rental Income amount. Then grow the rental income on a compounded basis for Years 2-6, calculating the Year 2+ values as: (prior year value) (1 + Annual Rental Income Growth rate). Next calculate the Year 6 Sale Value by dividing the Year 6 Annual Rental Income by the Terminal Value Sale Capitalization Rate assumption provided. Finally, sum the Annual Rental Income and Sale Value lines to calculate the Total Cash Flow line, and fill in the Total of the Total Cash Flow line in cell C17. There are three calculation methods for solving for the Present Value of Kuo Office Property. Naturally, all produce the same results. Instructions on how to apply the methods in Excel ar 5 FIGURE 1.1 Prese Value of Om Property Varios Constant 2.000.000 Total Cash Flow Total Discounted at ON Discounted at LOON Discounted at 8 DON Discounted at 12.00 $57,423,017 $43.364457 Year 1 Year 3.000.000 100.000 3,370,00 2,912,621 2.997.455 3.054,760 2.777,778 2.1 2.675 2612571 2.535.077 2.199,269 3.573.048 1.11.07 2.626,297 2,270, 717 Px.cated style Yeart Discounted at 0.00% Discounted at 100 Discounted at 8 DON Discounted at 12.00% Present Value $57 423,017 54.364457 S913,190 $32,557,25 3.000.000 2,912,621 2.777,778 2,678,571 Present Value of Cash Flow Year 2 Years Year 4 3.180,000 3,370,000 3,573,048 3,084,760 1174,607 2.726,337 2.675.850 2.626, 297 2.535.077 2,399.269 2,270,737 3.787 431 40511 267,071 3124 2.577.562 25.5.20 2.149.090 20.524 50 NPV aldated Present w Discounted at 0.00 Discounted at 3.00 Discounted at 8.00% Discounted at 12.00 Present Value 557,423,017 $49,364,457 $18.913,190 $32,557.251 Online Companion Hands On: Go to Textbook.GetREFM.com/toc/ and select the link for the Online Companion to Chapter 1. Scroll down to the Excel Figures section and download the Excel file and open it. Take note of the Assumptions provided at the top of the Figure 1.1 tab, formatted in bold blue font. The convention of formatting assumptions this way will be observed throughout the Online Companion Enter 3,000,000 in cell E15 for the Year 1 Annual Rental Income amount. Then grow the rental income on a compounded basis for Years 2-6, calculating the Year 2+ values as: (prior year value) (1 + Annual Rental Income Growth rate). Next calculate the Year 6 Sale Value by dividing the Year 6 Annual Rental Income by the Terminal Value Sale Capitalization Rate assumption provided. Finally, sum the Annual Rental Income and Sale Value lines to calculate the Total Cash Flow line, and fill in the Total of the Total Cash Flow line in cell C17. There are three calculation methods for solving for the Present Value of Kuo Office Property. Naturally, all produce the same results. Instructions on how to apply the methods in Excel ar 5