Question: Please do all the steps in excel Consider the following pro forma for the next 4 questions Potential Gross Income 100,000 sq. ft for the

Please do all the steps in excel
Please do all the steps in excel Consider the following pro forma
for the next 4 questions Potential Gross Income 100,000 sq. ft for

Consider the following pro forma for the next 4 questions Potential Gross Income 100,000 sq. ft for the coming year average rent $15.00 per ft. Less Vacancy Allowance (average 8% ) Effective Gross Income Estimated Net Operating Income \$ 1,025,200 22 The purchase price today is 9,500,000, what is the cap rate? Estimated Net Operating Income $1,025,200 22 The purchase price today is 9,500,000, what is the cap rate? 23 We are planning to own this property for 5 years. Rents are projected to grow at 2% per year, vacancy is expected to remain constant at 8% for the first 3 years then jump to 10% in year 4 and remain at that level into the future, insurance will increase 2% per year and the rest of the expenses are as described. What is the NOI in year 5 ? 24 If the terminal (ending) cap rate is projected at 10% what is the expected selling price of the property at the end of the holding period? 25 What is the NPV of this investment at a discount rate of 12% (use the purchase price from question 16)

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