Section 2: MIRR, Duration, Partitioning, Risk Chart

The down payment or equity needed for this investment is $60,000 (outflow)

N Cash Flow

1. $15,000 Savings Rate is: 1.5% and Loan Rate is 8%
2. 5,000
3. -4,000
4. 8,000

Sale 4 $65,000

Calculate the adjustment rate to use for MIRR:

1. Do MIRR for the above example:

2. Partition and do Duration using the MIRR rate for the chart below:

N Cash Flow Present Value N N*PV

Partition: %CF rental income and % CF from Sales

3. Complete the Risk Chart below:

Reference Case(original) Less Risk More Risk

MIRR _______ __________ _________

%CF rental ________ __________ _________

%Sale ________ __________ _________

Duration ________ __________ _________