Part One - Given the following information, calculate the net operating income over the holding period...assuming below-line treatment of capital expenditures. Property: 4 office units Contract Rents per unit: $3500 per month, inflate at 5% annually per year per the lease Vacancy and collection losses: 9% Operating Expenses: inflate at 10% per year real estate taxes $10,000 per year insurance $3,000 per year cam $2,000 per year property management - 5% of EGI Capital Expenditures: 10% of PGI Part One -

Create a one year and multi year proforma and report the cash flow before debt service

Part Two - Direct Cap - 10% = value of? --------------------------- Part Three - DCF - 10 years with an 11th year sale to Shawn, Ivan/Neve is paid a 5% commission; discount rate of 7%. Purchase price $600,000. What is NPV? What is IRR?

Part Three - DCF - 10 years with an 11th year sale to Shawn, Ivan/Neve is paid a 5% commission; discount rate of 7%. Purchase price $600,000.

What is NPV?

What is IRR?

Answer in Excel and all 3 please for a thumbs up!