50.1K

Verified Solution

Link Copied!

Part 2 - NPV & IRR Given the following information provide an analysis that answers the questions at the end of the assignment. Purchase Price: $4,735,000 Rents: Tenant Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 Unit 8 Monthly Rent $5.325 $5,324 $6,255 $3,425 $3,413 $3,368 $3.925 $3.115 Year 1 NOI: $286,615 NOI Growth Rate: 2.12% Loan: LTV: 65% Amortization Period: 20 years, Term: 5 years Interest Rate: 3.45% Lender Points: 2.25% Selling Costs: 3% Going Out Cap Rate: 5.7% Discount Rate: 12% Questions: 1. What is the going in cap rate? 2. What is year 1 PGI? 3. What is the DSCR? 4. What is your Initial Investment? 5. What is the sale price after the five-year hold? 6. What is the loan balance at sale? 7. What is the NPV for this project? 8. What is the IRR for this project? 9. What is the DCF for this project? 10. What is the reversion amount? Please show your work in an Excel file, highlighting yours answers. Part 2 - NPV & IRR Given the following information provide an analysis that answers the questions at the end of the assignment. Purchase Price: $4,735,000 Rents: Tenant Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 Unit 8 Monthly Rent $5.325 $5,324 $6,255 $3,425 $3,413 $3,368 $3.925 $3.115 Year 1 NOI: $286,615 NOI Growth Rate: 2.12% Loan: LTV: 65% Amortization Period: 20 years, Term: 5 years Interest Rate: 3.45% Lender Points: 2.25% Selling Costs: 3% Going Out Cap Rate: 5.7% Discount Rate: 12% Questions: 1. What is the going in cap rate? 2. What is year 1 PGI? 3. What is the DSCR? 4. What is your Initial Investment? 5. What is the sale price after the five-year hold? 6. What is the loan balance at sale? 7. What is the NPV for this project? 8. What is the IRR for this project? 9. What is the DCF for this project? 10. What is the reversion amount? Please show your work in an Excel file, highlighting yours answers

Answer & Explanation Solved by verified expert

See Answer