Variables/ Assumptions
Purchase Price	PP	$575,000
Required return	r	10%
Rent	i	$585	per week
Growth	g		per annum
Term	n	4	years
Management Fees and statutory fees		$7,405	per annum
Vacancy and relet fees		5%	gross income
Acquisition costs		4%	PP
Terminal Yield	TY	3.50%
Selling costs		3%

	0	1	2	3	4
Purchase Price	-$575,000
Acquisition costs	-$23,000
Gross income		$30,420	$30,420	$30,420	$30,420
Vacancy		-$1,521	-$1,521	-$1,521	-$1,521
Management fees and statutory fees		-$7,405	-$7,405	-$7,405	-$7,405
Net Income before interests and taxes	-$598,000	$21,494	$21,494	$21,494	$21,494

The analysts making a few mistakes on the cash flow above. Indicate at least four mistakes from the DCF above and explain why you do not agree with the methodology/assumptions adopted.