Assumptions: Year 0 1 2 3 4 5 6 Purchase Price 8,950,000 Purchase Price (8,950,000) Year 1 NOI 650,000 Loan Amount 6,265,000 Growth Rate 2.5% Loan Amount 6,265,000 Disposition Amount 9,517,857 Interest Rate 5.0% Loan Payoff (5,228,447) Loan Term 20 Cap Rate 7.0% NOI 650,000 666,250 666,250 666,250 666,250 666,250 Debt Payments (496,155) (496,155) (496,155) (496,155) (496,155) (496,155) Determine the Marginal Rate of Return for the 3rd year - Just fill in the appropriate cells Don't sell at the end of year 3 Cash from Operations Disposition Loan Payoff Total Cash Flow