Using the FO XLS Waterfall model, customize the model to conform to the following: $1MM equity investment
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Question:
Using the FO XLS Waterfall model, customize the model to conform to the following:
$1MM equity investment that is funded as follows:
95% LP
5% GP
8% preferred return to both GP and LP
Cash Flows
Year 1 - $110,000
Tear 2 - $320,000
Year 3 - $260,000
The reversion at the end of year 3 is $1,650,000
Splits after return of accrued preferred return, preferred return and original equity invested:
80% LP
20% GP
Paste the waterfall below. Ultimately you are solving for the equity leveraged IRR for both
the GP and LP
11.) In the example above calculate the before debt IRR for both cash flows and sale.
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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