Q5 (vt22)

Purchase Price (PP) for a Retail Property is $1,400,000 where 70% is allocated to Buliding Price appreciation 4% yr

tax rate 0,2

Discount rate 0,06

Loan 980000

Assume a LTV ratio of 70% and a loan with an interest rate of 6% and maturity of loan 30 yr: Depreciation period 27,5 yr NOI 1st yr = $100,000 increase 4% /yr 1-3

LT g = 3% exit yield 0,03 Price appr 1,04

a) Calculate BTCFo for a holdning period of 3 yrs

b) calculate ATCF0?

c) calculate ATCFs?