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alculate the Net Present Value (NPV) of the net cash flows generated by the property for years 1 thru 5 only. Use a 5th year reversion value

Please solve the below problem in Excel

 

Question # 1

 

Property is 10,000 square feet

 

Rent is $20 per square foot and increases $2 per annum

 

Vacancy and Collection is 5% of PGI

 

Real Estate Taxes are $30,000 in year 1 and increase 5% per annum

 

Operating Expenses are $15,000 in year 1 and increase $2 per square foot per annum

 

Management is 5% of EGI

 

Discount Rate is 10%

 

Capitalization Rate is 8%

 

There is also a $500,000 mortgage in the property with an interest only rate of 7%.

 

Please calculate the net cash flows of the subject property for all years and assume that it is sold at the end of the 5th year.

 

Please calculate the Net Present Value (NPV) of the net cash flows generated by the property for years 1 thru 5 only. Use a 5th year reversion value

 

Please calculate the IRR of the investment assuming it is sold in the 5th year. The year 0 purchase price is $1,000,000

alculate the Net Present Value (NPV) of the net cash flows generated by the property for years 1 thru 5 only. Use a 5th year reversion value

 

 

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