GENERAL DATA Purchase Price Loan % Loan Amount Interest Ratelyc Monthly Constant (Rm) Building Data Bldg RSF OE/RSF Rents PSF $9,000,000.00 75.00% $6.750.000 9.50% Reversion Data Going Out Cap Rate 100000 $8.00 $18.00 10.50% Investors Discount Rate 15.00% Initial Equity Price Loan Initial Investment Term/months Monthly PMT Annual DS 300 $9,000,000 6,750,000 2,250,000 Before Tax CASH FLOWS Year 1 $1,800,000 Year 2 $1,872,000 Year 3 $1,946,880 Year 4 $2,024,755 Year 5 $2,105,745 Year 6 $2,189,975 Potential Gross Income Vacancy & Credit Losses Other Income Effective Gross Income Operating Expenses Net Operating Income Debt Service Before Tax Cash Flow $90,000 SO $1,710,000 $800,000 $910,000 $93,600 $0 $1,778,400 $832,000 $946,400 $97,344 $0 $1,849,536 $865,280 $984,256 $101,238 $0 $1,923,517 $899,891 $1,023,626 $105,287 $0 $2,000,458 $935,887 $1,064,571 $109,499 $0 $2,080,476 $973,322 $1,107,154 Property Reversion Value less: costs of sale Remaining Loan Balance Net Sale Proceeds -$843,546 1. What is the OER in year 1? 2. What is the DCR in year 1? 3. What is the IRR on equity? 4. What is the GPV of the equity? 5. Does this investment experience positive financial leverage? How do you know? 6. What proportion of the IRRe is attributable to Cash Flows? 7. What proportion of the IRRe is attributable to Reversion? GENERAL DATA Purchase Price Loan % Loan Amount Interest Ratelyc Monthly Constant (Rm) Building Data Bldg RSF OE/RSF Rents PSF $9,000,000.00 75.00% $6.750.000 9.50% Reversion Data Going Out Cap Rate 100000 $8.00 $18.00 10.50% Investors Discount Rate 15.00% Initial Equity Price Loan Initial Investment Term/months Monthly PMT Annual DS 300 $9,000,000 6,750,000 2,250,000 Before Tax CASH FLOWS Year 1 $1,800,000 Year 2 $1,872,000 Year 3 $1,946,880 Year 4 $2,024,755 Year 5 $2,105,745 Year 6 $2,189,975 Potential Gross Income Vacancy & Credit Losses Other Income Effective Gross Income Operating Expenses Net Operating Income Debt Service Before Tax Cash Flow $90,000 SO $1,710,000 $800,000 $910,000 $93,600 $0 $1,778,400 $832,000 $946,400 $97,344 $0 $1,849,536 $865,280 $984,256 $101,238 $0 $1,923,517 $899,891 $1,023,626 $105,287 $0 $2,000,458 $935,887 $1,064,571 $109,499 $0 $2,080,476 $973,322 $1,107,154 Property Reversion Value less: costs of sale Remaining Loan Balance Net Sale Proceeds -$843,546 1. What is the OER in year 1? 2. What is the DCR in year 1? 3. What is the IRR on equity? 4. What is the GPV of the equity? 5. Does this investment experience positive financial leverage? How do you know? 6. What proportion of the IRRe is attributable to Cash Flows? 7. What proportion of the IRRe is attributable to Reversion