Please help me setting up the excel im lost. How to solve npv with no discount rate and is npv the maximum willingness to pay?Take a look at this:

Property Information:

WEST OFFICE PLAZA

Rentable Area

Age

# Stories

# Tenants

Financial Information:

Base Rent Avg.

Other Income$/$Parking$/$Storage

Expenses Recoverable from Tenants

Current Vacancy

Expenses:

Mgmt$/$Admin$/$Security$/$Ownenhip

Property Taxes

Insurance

Genenal Openations$/$Leasing Expense$/$Marketing

Utilities

JanitoriaL$/$CTeaning

Business Taxes

Other:

Recurring CAPEX$/$Improvement Allowance

$$20$ per $sq.f.$

$$1\mathrm{.}50$ per $sq.fL$

$$2\mathrm{.}50$ per $sq.fL.$

$5\%$

$$695,000$

$$675,000$

$$430,000$

$$667,000$

$$1,159,100$

$$489,000$

$$110,000$

You are an adviser to a private equity client who is thinking about buying this bullding. This client

requires an $9\%$ IRR after taxes are taken into account, and you are nervous because this market has

shown no rent or occupancy growth for the past five years $($but no declines eltherl$)$ You anticipate a

three year holding period. Note that this is not strictly speaking a triple net lease, but there are

provisions for recovering expenses from the tenants. Do not worry about the differences in cost items

between this pro forma and the example in class. Every one is different. Do not include items from the

class example that are not included here.