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REAL ESTATE Finding NPV and IRR I need to find the NPV and IRR from the given information. Calculations I have made: NOI = 330,000
REAL ESTATE Finding NPV and IRR
I need to find the NPV and IRR from the given information.
Calculations I have made:
NOI = 330,000 for first 5 years, 308,000 for year 6
Debt Service/Loan Pmt = 15,937.50/month or 191,250/yr
Unlevered NPV will be calculated using only NOI
However, levered IRR will be calculated using Before Tax Cash Flow (NOI - yearly loan payments/Debt service).
ANSWERS:
29. 21% (levered IRR)
30. -254,770
Not sure how to get to these answers with or without financial calculator
For questions 26-30, use the following case: $5,550,000 Interest only loan (payment includes no amortization) Rate of 4.25 percent Amount: $4,500,000 5.8 percent 9 percent 13 percent Property price: Debt financing: "Going-out" cap rate in 5 years: Investor's required yield, unlevered: Investor's required yield, levered: 4 740,000 PGI Vac & Col. Loss Op. Exp. Cap-X 740,000 70,000 305,000 35,000 740,000 70,000 305,000 35,000 740,000 70,000 305,000 35,000 70,000 305,000 35,000 740,000 70,000 305,000 35,000 790,000 73,000 320,000 39,000
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