Question: Return Metrics and Cap Rate - 5 points * Fill in all all grey areas with the requested information. Part 1 What is the purchase

Return Metrics and Cap Rate -5 points *Fill in all all grey areas with the requested information. Part 1 What is the purchase price for the below property's NOI if you want your Year 1 cap rate to be 6%? What is your Sale Price if you sell the building in Year 10 at a 5.5% cap rate? Year 012345678910 NOI $81,000 $83,430 $85,933 $88,511 $91,166 $93,901 $96,718 $99,620 $102,608 $105,687 Purchase Price Sale Price Part 2 Add the purchase price and sale price to the NOI's above to get to unlevered Net Cash Flow. You may link or input the sale and purchase price, you are not being asked to make it dynamic. What is the Unlevered IRR? What is the Yield On Cost for each year? Year 012345678910 NOI $81,000 $83,430 $85,933 $88,511 $91,166 $93,901 $96,718 $99,620 $102,608 $105,687 Purchase Sale Unlevered NCF $0 $81,000 $83,430 $85,933 $88,511 $91,166 $93,901 $96,718 $99,620 $102,608 $105,687 YoC Unlevered IRR Part 3 Add the following financing assumptions in to get to to Levered Net Cash Flow. Loan amount, PMT, and ADS are completed already for you. What is the Levered IRR, Profit, and Equity Multiple What is the Cash on Cash and Return on Equity (principal payments have been broken out already by the professor.) LTV 70% Loan Amount $945,000 Rate 6% Amortization (yrs)30 Pmt $5,665.75 ADS $67,989.03 Year 012345678910 Unlevered NCF $0 $81,000 $83,430 $85,933 $88,511 $91,166 $93,901 $96,718 $99,620 $102,608 $105,687 Loan Amount Loan Payment Loan Payback ($790,830) Levered NCF $0 $81,000 $83,430 $85,933 $88,511 $91,166 $93,901 $96,718 $99,620 $102,608($685,143) Cash on Cash Return on Equity Principal Payments for Return on Equity ($11,605)($12,320)($13,080)($13,887)($14,744)($15,653)($16,618)($17,643)($18,732)($19,887)*these are the amount of principal paid in each year. Levered IRR Profit Equity Multiple include each formula needed for each cell in excel sheet

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!