1. What is the OER in year 1? _________________________________
2. What is the DCR in year 1? ________________________________
3. What is the IRR on equity? _______________________________
4. What is the GPV of the equity? ____________________________
5. Does this investment experience positive financial leverage? How do you know?
6. What proportion of the IRRe is attributable to Cash Flows? ________________________________
7. What proportion of the IRRe is attributable to Reversion?

$9,000,000.00 75.00% Building Data Bldg RSF OE/RSF Rents PSF GENERAL DATA Purchase Price Loan % Loan Amount Interest Rate/yr Monthly Constant (Rm) Reversion Data Going Out Cap Rate 100000 $8.00 $18.00 10.50% 9.50% Investors Discount Rate 15.00% $9,000,000 300 Initial Equity Price Loan Initial Investment Term/months Monthly PMT Annual DS Before Tax CASH FLOWS Year 1 Year 2 $1,800,000 $1,872,000 Year 3 $1,946,880 Year 4 $2,024,755 Year 5 $2,105,745 Year 6 $2,189,975 $90,000 $0 $93,600 $0 $97,344 $0 $101,238 $0 $105,287 SO $109,499 $0 Potential Gross Income Vacancy & Credit Losses Other Income Effective Gross Income Operating Expenses Net Operating Income Debt Service Before Tax Cash Flow $1,710,000 $1,778,400 $800,000 $832,000 $910,000 $946,400 $1,849,536 $865,280 $984,256 $1,923,517 $899,891 $1,023,626 $2,000,458 $935,887 $1,064,571 $2,080,476 $973,322 $1,107,154 Property Reversion Value less: costs of sale Remaining Loan Balance Net Sale Proceeds -$843,546 You need to fill in the blanks to answer the questions below: Now, based on DCF Problem 2: answer some questions $9,000,000.00 75.00% Building Data Bldg RSF OE/RSF Rents PSF GENERAL DATA Purchase Price Loan % Loan Amount Interest Rate/yr Monthly Constant (Rm) Reversion Data Going Out Cap Rate 100000 $8.00 $18.00 10.50% 9.50% Investors Discount Rate 15.00% $9,000,000 300 Initial Equity Price Loan Initial Investment Term/months Monthly PMT Annual DS Before Tax CASH FLOWS Year 1 Year 2 $1,800,000 $1,872,000 Year 3 $1,946,880 Year 4 $2,024,755 Year 5 $2,105,745 Year 6 $2,189,975 $90,000 $0 $93,600 $0 $97,344 $0 $101,238 $0 $105,287 SO $109,499 $0 Potential Gross Income Vacancy & Credit Losses Other Income Effective Gross Income Operating Expenses Net Operating Income Debt Service Before Tax Cash Flow $1,710,000 $1,778,400 $800,000 $832,000 $910,000 $946,400 $1,849,536 $865,280 $984,256 $1,923,517 $899,891 $1,023,626 $2,000,458 $935,887 $1,064,571 $2,080,476 $973,322 $1,107,154 Property Reversion Value less: costs of sale Remaining Loan Balance Net Sale Proceeds -$843,546 You need to fill in the blanks to answer the questions below: Now, based on DCF Problem 2: answer some questions