Fin 40710/Prospective Employee Excel Valuation Modeling Exercise Please provide a 10 year annual DCF valuation model of the following scenario for the purpose of a hold/sell analysis. Please use the assumptions in the table found below. Fill in any assumptions you need. If assumptions are made that aren't listed on the chart, please briefly detail. In addition, write a brief summary no more than a few paragraphs, detailing your hold/sell recommendation, the investment, and any important points. Please be concise. Assume that "senior manage what vou have produced rs" will be reviewing and basing their decisions on There is in Sakai an excel file with an incomplete cash flow statement from the Argus software system and a complete rent roll (recall that the rent roll is a something of lease abstract that provides the important contractual elements of tenant rents). Create a valuation spreadsheet as a separate sheet in this file. (For extra credit, create your spreadsheet using the Argus cash flow statement tab as a template.) Feel free to build the model out as you see fit and create any schedule tabs that you feel are necessary NOTE: Build a flexible model that can be used to evaluate different economic scenarios. In particular, create input cells where current market rent, discount rate, and terminal cap rate are stored, and reference those cells in your model so that you can change valuation assumptions easily. You will also need a strategy for reaching stabilization. I would create a space absorption plan that is easily modified within the model in order to do sensitivity analysis Please be sure to show the following: IRR based on the $19,500,000 purchase price - levered and unlevered (that is, once based on asset cash flow and again based on equity cash flow, thus you will need debt cash flow.) Equity multiple each period Cash on cash return each period Sensitivity analysis on pertinent details This exercise may be done in groups of up to 3 questions from this exercise are likely to be asked on the final. . Note, however, everyone needs to participate - Fin 40710/Prospective Employee Excel Valuation Modeling Exercise Please provide a 10 year annual DCF valuation model of the following scenario for the purpose of a hold/sell analysis. Please use the assumptions in the table found below. Fill in any assumptions you need. If assumptions are made that aren't listed on the chart, please briefly detail. In addition, write a brief summary no more than a few paragraphs, detailing your hold/sell recommendation, the investment, and any important points. Please be concise. Assume that "senior manage what vou have produced rs" will be reviewing and basing their decisions on There is in Sakai an excel file with an incomplete cash flow statement from the Argus software system and a complete rent roll (recall that the rent roll is a something of lease abstract that provides the important contractual elements of tenant rents). Create a valuation spreadsheet as a separate sheet in this file. (For extra credit, create your spreadsheet using the Argus cash flow statement tab as a template.) Feel free to build the model out as you see fit and create any schedule tabs that you feel are necessary NOTE: Build a flexible model that can be used to evaluate different economic scenarios. In particular, create input cells where current market rent, discount rate, and terminal cap rate are stored, and reference those cells in your model so that you can change valuation assumptions easily. You will also need a strategy for reaching stabilization. I would create a space absorption plan that is easily modified within the model in order to do sensitivity analysis Please be sure to show the following: IRR based on the $19,500,000 purchase price - levered and unlevered (that is, once based on asset cash flow and again based on equity cash flow, thus you will need debt cash flow.) Equity multiple each period Cash on cash return each period Sensitivity analysis on pertinent details This exercise may be done in groups of up to 3 questions from this exercise are likely to be asked on the final. . Note, however, everyone needs to participate
