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I need help figuring out the numbers in the 2nd and 3rd sheet on excel. The word document has all the details. I believe i
I need help figuring out the numbers in the 2nd and 3rd sheet on excel. The word document has all the details. I believe i did the 1st sheet right. Please help asap as this is due tonight. Thank you.
Ann is looking to buy an office building in 2014. She plans to rent it out for 5 years (2015-2019) and sell it at the end of 2019. (1) Use the first sheet of the spreadsheet (titled \"NOI\") to compute the Net Operating Income (NOI) for this property for 2015. Fill in the missing information in the spreadsheet. This property has two types of operating income, rental income and parking. Rental Income in 2015 = (# square feet)*(Annual rent per square foot in 2015) Parking is a fixed dollar amount given Vacancy expenses in 2015 = (Rental vacancy rate in 2015)*(rental income in 2015) Collection losses in 2015 = (collection loss rate in 2015)*(PGI in 2015) Operating Expenses in 2015 = (Operating expense rate in 2015)*(EGI in 2015) (1.a) What is the NOI for 2015? (1.b) If this building is being sold in 2014 at an asking cap rate of 6.50%, what is the asking price? (2) Fill in the second sheet (titled \"underwriting\"). Where it says \"Income Test\Inputs Square feet Annual rent per square foot 2015 Parking income 2015 Rental vacancy rate 2015 Collection loss rate 2015 Operating expense rate 2015 Asking cap rate 2014 Asking Price $ $ Cells highlighted highlighted green green represent represent inputs inputs 20000.00 Cells 55.00 20,000.00 2.40% % per square foot 2.00% % of PGI 47.00% % of EGI 6.50% $8,734,400.00 Operating Income Rental Income Parking Potential Gross Income (PGI) Vacancy Expenses Collection losses Effective Gross Income (EGI) Operating Expenses Net Operating Income (NOI) 2015 $1,100,000.00 $ 20,000.00 $1,120,000.00 $26,400.00 $22,400.00 $1,071,200.00 $503,464.00 $567,736.00 Fill Fill in in cells cells highlighted highlighted yellow yellow Inputs Interest Rate Minimum DSCR Maximum LTV Downpayment Asking Price NOI 2015 4.25% IO loan, 5-year balloon 1.20 90% $ 1,400,000.00 $8,734,400.00 $567,736.00 Income Test Maximum Annual Mortgage Payment Maximum Loan Amount Collateral Test Maximum Loan Amount w/ downpayment Both tests Maximum Loan Amount Debt Service Payment Ann makes a $1,400,000 downpayment Loan amount Debt Service Payment $473,113.33 $11,132,078.43 $ 12,600,000.00 $11,132,078.43 $473,113.33 Inputs Purchase Price Loan amount Debt Service NOI 2015 Going in cap rate 2014 NOI growth rate Exit cap rate 2019 $8,734,400.00 $0.00 $0.00 $567,736.00 6.50% 2.00% 6.25% Year Purchase Price Loan Amount Net Operating Income (NOI) Debt Service Payment Sale Price Loan Balance Repaid Net Cash Flow IRR 2014 Discount Rate NPV 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% 16.00% 17.00% 18.00% 19.00% 20.00% 21.00% 22.00% 23.00% 24.00% 25.00% 26.00% 27.00% 28.00% 29.00% 30.00% 31.00% 2015 2016 2017 2018 2019 Net Present Value $12.00 $10.00 $8.00 NPV ($) $6.00 $4.00 $2.00 $0.00 0.00% 10.00% 20.00% 30.00% 40.00 Discount Rate (%) 32.00% 33.00% 34.00% 35.00% 36.00% 37.00% 38.00% 39.00% 40.00% 41.00% 42.00% 43.00% 44.00% 45.00% 46.00% 47.00% 48.00% 49.00% 50.00% 51.00% 52.00% 53.00% 54.00% 55.00% 56.00% 57.00% 58.00% 59.00% 60.00% 2020 Capital Gain Net Present Value 20.00% 30.00% 40.00% Discount Rate (%) 50.00% 60.00% 70.00%Step by Step Solution
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