Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Net Operating Income in 5,000 $ 325 438 Debt Service 3,500 $ (308) (308) $ (308) $ (308) $ (308) Cash Flow Before Tax 1,500 17 130 Required Return to LP 1,350 $ 108 108 Required Return to GP 150 12 12 Cumulative (Deficit) or Surplus (103) (93) Preferred Payment to LP 15 117 Preferred Payment to GP Surplus to LP (70%) 0oa Surplus to GP (30%) Model Continued On The Next Page