| BUSI 520 WEEK 5 CASE ANALYSIS |
| CHAPTER 11 PROBLEM 2 |
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| Year 0 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
| Purchase Price |
| NOI |
| Rental Income |
| Vacancies & Collections |
| Effective Gross Income |
| Operating Expenses |
| NOI |
| Debt Service |
| Before Tax Cash Flow |
| Annual Debt Service |
| Loan Amount |
| Mortgage Balance |
| Debt Coverage Ratio |
| Terminal Cap rate |
Yr5NOI/Resale $ |
| BTIRR |
| Sales Price |
| Mortgage Balance Yr 5 |
| BT Cash Flow |
| Chapter 13 Problem 3 |
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| Year 0 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
Resale value |
Probability |
| Pessimistic |
NOI |
| Most Likely |
NOI |
| Optimistic |
NOI |
| Pessimistic |
IRR |
| Most Likely |
IRR |
| Optimistic |
IRR |
| Pessimistic |
EIRR |
| Most Likely |
EIRR |
| Optimistic |
EIRR |
| Overall Exp IRR |
| Pessimistic |
Deviation |
| Most Likely |
Deviation |
| Optimistic |
Deviation |
| Pessimistic |
Sq Dev |
| Most Likely |
Sq Dev |
| Optimistic |
Sq Dev |
| Pessimistic |
Product |
| Most likely |
Product |
| Optimistic |
Product |
| Variance |
| Standard Deviation |
| An investor may prefer a lower IRR and than a larger variance |
| CHAPTER 14, PROBLEM 1 |
| Sales Price |
| Mortgage Balance |
| Cap Gains Tax |
| ATCF |
| Additional ATCF |
| Irr 15% |
| Marginal ROR |
| CHAPTER 14, PROBLEM 2 |
| ATCF from renovation |
| ATCF if not renovated |
| Sales Price Renovated |
| Sales Price if not renovated |
| Additional cash flow |
| Renovation |
| Return on Renovation |
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BUSI520Week5CaseAnalysisTemplate1.xlsx
