Construct the cash flow proforma statement for the following project by filling out the cells (without an X) of the following table.

• A 2-year levered equity investment between t=0 and t=2.
• The first NOI is 10 at t=1, and NOI grows at 3%/yr.
• The cap rate is 5% (going-in) at t=0 and increases by 0.5%/yr to 6% (going-out) at t=2.
• Capital Expenditures are 10% of NOI.
• The investment is levered with a two-year, annual-payment CPM at a 4% interest rate with the face value of 80 (i.e., the initial loan amount is 80).

	T=0	T=1	T=2	T=3
	Today	1 year later	2 years later	3 years later
	Cash flow at the beginning of the project	Cash flows for the first period (between t=0 and t=1)	Cash flows for the second period (between t=1 and t=2) and the last CF
[Cap Rate]				X
NOI	X
Acquisition CF at t = 0 (<0)		X	X	X
Capital expenditures (<0)	X			X
Disposition CF at t = 2 (>0)	X	X		X
Property BT CF				X
Loan at t = 0 (>0)		X	X	X
DS incl. the final pmt. (<0)	X			X
Equity BT CF				X
Loan Balance				X