| | | | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 |
| Key Assumptions |
| Square footage |
| Property price ($) |
| Down payment |
| Interest rate |
| Closing costs at start |
| Broker fee in year 25 |
| Property Value |
| Yearly appreciation |
| Mortgage Balance |
| | | Net Property Value |
| Operating Assumptions |
| Rent/sq.ft. / Inflator |
| Op. costs/yr. ($) / Inflator |
| Tax rate |
| Depreciation/year ($) |
| Cash Flows |
| Rent Income |
| minus: Operating Costs |
| minus: Debt Amortization |
| plus: Interest tax shield |
| plus: Depreciation tax shield |
| minus: Initial Expenses |
| plus: Sale Property in year 25 |
| Total Cash Flows |
| IRR |
| NPV @5% |
| Note: Tax shields are the tax gains from expensing interest or depreciation. The general formula is interest expense x tax rate for interest tax shield. |
| |
S.p
MGMT332_Excel_Template_7.xlsx
