Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part 2 - NPV & IRR Given the following information provide an analysis that answers the questions at the end of the assignment. Purchase Price:

image text in transcribed

Part 2 - NPV & IRR Given the following information provide an analysis that answers the questions at the end of the assignment. Purchase Price: $4,735,000 Rents: Tenant Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 Unit 8 Monthly Rent $5.325 $5,324 $6,255 $3,425 $3,413 $3,368 $3.925 $3.115 Year 1 NOI: $286,615 NOI Growth Rate: 2.12% Loan: LTV: 65% Amortization Period: 20 years, Term: 5 years Interest Rate: 3.45% Lender Points: 2.25% Selling Costs: 3% Going Out Cap Rate: 5.7% Discount Rate: 12% Questions: 1. What is the going in cap rate? 2. What is year 1 PGI? 3. What is the DSCR? 4. What is your Initial Investment? 5. What is the sale price after the five-year hold? 6. What is the loan balance at sale? 7. What is the NPV for this project? 8. What is the IRR for this project? 9. What is the DCF for this project? 10. What is the reversion amount? Please show your work in an Excel file, highlighting yours answers. Part 2 - NPV & IRR Given the following information provide an analysis that answers the questions at the end of the assignment. Purchase Price: $4,735,000 Rents: Tenant Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 Unit 8 Monthly Rent $5.325 $5,324 $6,255 $3,425 $3,413 $3,368 $3.925 $3.115 Year 1 NOI: $286,615 NOI Growth Rate: 2.12% Loan: LTV: 65% Amortization Period: 20 years, Term: 5 years Interest Rate: 3.45% Lender Points: 2.25% Selling Costs: 3% Going Out Cap Rate: 5.7% Discount Rate: 12% Questions: 1. What is the going in cap rate? 2. What is year 1 PGI? 3. What is the DSCR? 4. What is your Initial Investment? 5. What is the sale price after the five-year hold? 6. What is the loan balance at sale? 7. What is the NPV for this project? 8. What is the IRR for this project? 9. What is the DCF for this project? 10. What is the reversion amount? Please show your work in an Excel file, highlighting yours answers

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quantum Economics And Finance

Authors: David Orrell

3rd Edition

1916081630, 978-1916081635

More Books

Students also viewed these Finance questions