QUESTION 26

In performing a sensitivity analysis how would the NPV and IRR change if vacancy rates were 35% instead of 25%? Assume no other changes from the original question.

	a.	NPV would be positive and IRR would be 19.6%
	b.	NPV would be negative and IRR would drop to 6.23%
	c.	NPV would be positive and IRR would drop to 13.4%
	d.	NPV would be negative and the IRR would drop to 14.4%

QUESTION 27

In addition to the assumption change in question 26, how would INCREASING the going out Cap Rate change the IRR and NPV?

	a.	NPV and IRR would become worse.
	b.	NPV would be better and IRR would be worse
	c.	NPV would be worse and the IRR would be better
	d.	NPV would stay the same and IRR would stay the same

QUESTION 28

In performing an additional sensitivity analysis, including the changed assumption in question 26 but not question 27, how would NPV and IRR be changed assuming Potential Gross Income INCREASED 5% (INSTEAD OF 2%) EVERY YEAR THROUGH YEAR 6?

	a.	IRR would change to 1.2% and NPV would be negative
	b.	IRR would change to 10.6% and NPV would be positive
	c.	IRR would increase to 8.2% and NPV would be positive
	d.	IRR would change to 13.96% and NPV would be negative

QUESTION 29

Considering ALL of the changes in questions 26 and 28, what would the Debt Service Coverage Ratio be and would it be acceptable to the bank making the loan?

	a.	It would be 1.1 and would be acceptable
	b.	It would be .99 and would not be acceptable
	c.	It would be 1.37 and would be acceptable
	d.	It would be .84 and would not be acceptable

QUESTION 30

What is the EGI Multiplier Valuation of the building considering ALL the changes in this sensitivity analysis and using comps of 10.6, 10.1 and 10.4

	a.	606,450,000
	b.	599,748,254
	c.	642,571,224
	d.	636,771,481