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Part 5 Building Value Land Value Total Value 925,000 200,000 1,125,000 Loan Assumptions: Loan-to-value Loan Amount Equity Investment Term (years) Interest rate Monthly Payment BAL

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Part 5 Building Value Land Value Total Value 925,000 200,000 1,125,000 Loan Assumptions: Loan-to-value Loan Amount Equity Investment Term (years) Interest rate Monthly Payment BAL EOY3 Income Assumptions: Base NOI Growth rate Income tax rate Depreciation (years) Resale price 0.8 900000 225000 30 0.08 $6,603.88 $875,521.34 130000 0.02 0.34 31.5 1193859 Use the assumptions above to build a pro forma cash flow statement for the next 3 years with and without leverage. Find the BTIRR and ATRIRR for each scenario. Compute the BEIR. Is there positive or negative financial leverage? Part 5 Building Value Land Value Total Value 925,000 200,000 1,125,000 Loan Assumptions: Loan-to-value Loan Amount Equity Investment Term (years) Interest rate Monthly Payment BAL EOY3 Income Assumptions: Base NOI Growth rate Income tax rate Depreciation (years) Resale price 0.8 900000 225000 30 0.08 $6,603.88 $875,521.34 130000 0.02 0.34 31.5 1193859 Use the assumptions above to build a pro forma cash flow statement for the next 3 years with and without leverage. Find the BTIRR and ATRIRR for each scenario. Compute the BEIR. Is there positive or negative financial leverage

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