Refer to the pro forma income statement and identify the name of the line items and amounts used to calculate the various ROI's below in year 1.

State answers in terms of numerator amount (line item name) / denominator amount (line item name) --- Note that only a single line item is used for each numerator and each denominator:

1. Net Income Return on Investment (ROI)
2. Cash ROI
3. Total ROI

Table 3.4 Scenario I: 5 Year Pro Forma Income Statement As of January 1st Key Ratios Cost and Revenue Assumptions Financing Assumptions Land Building Improvements Closing Costs Total 350,000 3,000,000 0 0 25.000 3.375,000 3.375 000 843.750 2.531.250 Total Purchase Owner's Equity Balance to Finc 100.00% 25.00% 75.00% Total Square Feet Avg Sq FVUnit Avg Rent/Sq Ft Avg CostSq Ft Avg Unit Cost Capitalization Rate Gross Rent Multiplier Expense/Unit Expense/Foot 84,500.00 880.00 0.70 52.33 45.000.00 9.45% 6.25 3.417.92 3.97 Number of Units Average Monthly Rent Gross Monthly Revenues 75 600 45,000 Interest Rate Amort Period Payment Annual 6.500% 25 205,094 Monthly 0.542% 300 17,091 Rental Increase Projections Average Monthly Rent Operating Expense Projections 0.00% 600 0.00% % 3.50% 621 -2.50% 4.00% 646 0.00% 3.00% 665 2.50% 3.00% 685 2.50% Operating Revenues Gross Scheduled Income Vacancy Rate Net Rental income Other Income Gross Income 5.0% Actual Monthly 45,000 2.250 42,750 5.200 47,950 Year 1 540,000 27.000 513,000 62.400 575,400 Year 2 558,900 27.945 530,955 64.584 595,539 Projected Year 3 581,256 29.063 552,193 67.167 619,361 Year 4 598,694 29.935 568,759 69.182 637,941 Year 5 616,654 30.833 585,822 71.258 657,080 100.0% Operating Expenses Repairs and Maintenance Property Management Fees Taxes Insurance Salaries and Wages Utilities Trash Removal Professional Fees Advertising Other Total Op. Exp 12.2% 3.8% 7.3% 2.6% 5.8% 8.8% 0.8% 0.5% 1.0% 1.6% 44.6% 5,850 1,845 3,477 1,250 2,780 4,230 400 250 500 780 21.382 70,200 22,140 41,724 15,000 33,360 50,760 4,800 3,000 6,000 9.360 256.344 68,445 21,587 40,681 14,625 32,526 49,491 4,680 2.925 5,850 9.126 249.935 68,445 21,587 40,681 14.625 32,526 49,491 4,680 2,925 5,850 9.126 70,156 22,126 41,698 14.991 33,339 50.728 4,797 2,998 5,996 9.354 258.184 71,910 22.679 42.740 15,365 34,173 51,996 4,917 3.073 6,146 9.688 262.588 249.935 26,588 55.4% 319,056 345,604 389,425 381,75 Net Operating Income 394,491 28.6% 150,928 109,091 13.711 9.091 0 3,786 Q 3,786 Interest on Loan Dep. Exp. - Building Dep. Exp. - Equip Net Income Before Taxes Income Tax Rate Net Income After Taxes 163,301 109,091 0 46,684 0 46,664 160,502 109,091 9 76,011 0 76.011 157,515 109,091 0 102,819 0 102,819 154,329 109,091 Q 118,338 Q 2 118,338 134,471 0.0% 134,471 Cash Flow From Operations Net Income After Taxes Dep, Exp. Total CF From Ops. Interest on Loan Total Cash Available for Loan Servicing Debt Service Remaining After Tax CF From Ops Plus Principal Reduction Total Return 3,786 9.091 12,877 13.711 26,588 17.091 9,497 3.483 12,980 46,664 109.091 155,755 163.301 319,056 205,094 113,962 41.793 155,755 76,011 109.091 185,102 160.502 345,604 205,094 140,500 44.592 185,102 102,819 109,091 211,910 157.515 369,425 205.094 164,331 47 579 211,910 118,338 109,091 227,429 154.329 381,758 205.094 176,663 50.765 227,429 134,471 109.091 243,562 150.929 394,491 205.094 189,397 54.165 243,562 155.57% CF/Debt Servicing Ratio 155.57% 168.51% 192.35% 186.14% 180.12% Net Income ROI Cash ROI Total ROI 5.53% 13.51% 18.46% 9.01% 16.65% 21.94% 12.19% % 19.48% 25.12% 14.03% 20.94% 26.95% 15.94% 22.45% 28.87% Net CFs From Investment - 1 Yr Exit Net CFs From Investment - 3 Yr Exit Net CFs From Investment - 5 Yr Exit (843,750) (843,750) (843,750) 1,124,505 113.962 113,962 140,509 140.509 1,667,046 164,331 176,663 2,097,042 Estimated Exit Price/Gain On Sale - 1 Yr Estimated Exit Price/Gain On Sale - 3 Yr Estimated Exit Price/Gain On Sale - 5 Yr Exit Price 3,500,000 3,900,000 4,200,000 Gain on Sale 125,000 525,000 825,000 Cap Rate 9.12% Annualized IRR - 1 Yr 9.47% Annualized IRR - 3 Yr 9.39% Annualized IRR - 5 Yr IRR 33.27% 34.72% 31.07% WWW.THEVALUEPLAY.COM. COPYRIGHT PROTECTED 100