Question
hello, could you help me to compleat this question as soon as posible ? it is about finance class Husky Point Bar and Grill is
hello, could you help me to compleat this question as soon as posible ?
it is about finance class
Husky Point Bar and Grill is a bar/grill in a university town in Minnesota. You are interesting in purchasing Husky Point Bar and Grill. Consider the following information:
Husky Point Bar and Grill has been open for 5 years. Sales come predominately from businesses in the downtown district for lunch and college students on nights and weekends. Gross Sales for Husky Point were $120,000 last year and over the five year period have been growing at a rate of about 5% per year. Operating expenses at the property are expected to be 40% of effective gross rent and capital expenses are projected to be 5% of EGI. In addition to bar/food sales, Husky Point rents out parking spaces to a neighboring property for $500/month.
Step 1: Estimate Income for Holding Period
Complete an income statement for Husky Point for the 3 year holding period:
| Year 1 | Year 2 | Year 3 |
Potential Gross Income (PGI) |
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Less: Vacancy and Collection Loss (VC) |
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Plus: Misc. Income (MI) |
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Effective Gross Income (EGI) |
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Less: Operating Expenses (OE) |
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Less: Reserves for leasing and capital expenditures |
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Net Operating Income (NOI) |
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| Terminal Year Value: |
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