Question: hello, could you help me to compleat this question as soon as posible ? it is about finance class Husky Point Bar and Grill is

hello, could you help me to compleat this question as soon as posible ?

it is about finance class

Husky Point Bar and Grill is a bar/grill in a university town in Minnesota. You are interesting in purchasing Husky Point Bar and Grill. Consider the following information:

Husky Point Bar and Grill has been open for 5 years. Sales come predominately from businesses in the downtown district for lunch and college students on nights and weekends. Gross Sales for Husky Point were $120,000 last year and over the five year period have been growing at a rate of about 5% per year. Operating expenses at the property are expected to be 40% of effective gross rent and capital expenses are projected to be 5% of EGI. In addition to bar/food sales, Husky Point rents out parking spaces to a neighboring property for $500/month.

Step 1: Estimate Income for Holding Period

Complete an income statement for Husky Point for the 3 year holding period:

Year 1

Year 2

Year 3

Potential Gross Income (PGI)

Less: Vacancy and Collection Loss (VC)

Plus: Misc. Income (MI)

Effective Gross Income (EGI)

Less: Operating Expenses (OE)

Less: Reserves for leasing and capital expenditures

Net Operating Income (NOI)

Terminal Year Value:

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