Ex.18. GENERAL DATAPurchase PriceLoan %Loan AmountInterest rateTerm/yearsTerm/monthsMonthly PMTAnnual DSBefore Tax Cash Flows:Potential Gross IncomeVacancy & Credit LossesOther IncomeEffective Gross IncomeOperating ExpensesNet Operating IncomeDebt ServiceBefore Tax Cash Flow$10,200,00075.00%$7,650,0007.875%25300$58,412$700,943Year 1$2,340,000$234,000$219,024$10,000 $10,000$2,116,000 $2,224,576$1,100,000 $1,144,000$1,016,000 $1,080,576-$700,943 -$700,943$315,057 $379,633What is the Unlevered IRR (IRRO)?__What is the Levered IRR (IRRe)?_Year 2$2,433,600BUILDING DATAWhat is the NPV of the equity investment (NPVe)?Bldg RSFOE/RSFRents PSFYear 3$2,535,811$202,865$10,00090,000$12.22$26.00Year 4$2,644,851$211,588$10,000What is the Investment Value of the equity (GPVe) at the stated discount rate?Year 5$2,761,225$193,286$10,000Reversion DataGoing OutCap RateInvestors Discount Rate12.00%Year 6$2,899,286$202,950$10,000$2,706,336$2,342,946 $2,443,263 $2,577,939$1,189,760 $1,237,350 $1,286,844$1,338,318$1,153,186 $1,205,913 $1,291,094 $1,368,018-$700,943 -$700,943-$700,943$452,244 $504,970$590,15210.00%

The annual returns that a sum of investment will generate for the investor on each unit of money…

GENERAL DATA Purchase Price Loan % Loan Amount Interest rate Term/years Term/months Monthly PMT Annual DS Before Tax Cash Flows: Potential Gross Income Vacancy & Credit Losses Other Income Effective Gross Income Operating Expenses Net Operating Income Debt Service Before Tax Cash Flow $10,200,000 75.00% $7,650,000 7.875% $58,412 $700,943 25 300 Year 1 $2,340,000 $234,000 $10,000 Year 2 $2,433,600 $219,024 $10,000 $2,116,000 $2,224,576 $1,100,000 $1,144,000 $1,016,000 $1,080.576 -$700,943 -$700,943 $315,057 $379,633 What is the Unlevered IRR (IRRO)? What is the Levered IRR (IRRe)?__ BUILDING DATA Bldg RSF OE/RSF Rents PSF Year 3 $2,535,811 $202,865 $10,000 90,000 $12.22 $26.00 Year 4 $2,644,851 $211,588 $10,000 Year 5 $2,761,225 $193,286 $10,000 What is the Investment Value of the equity (GPVe) at the stated discount rate? Reversion Data Going Out Cap Rate 10.00% Investors Discount Rate 12.00% Year 6 $2,899,286 $202,950 $10,000 $2,706,336 $2,342,946 $2,443,263 $2,577,939 $1,189,760 $1,237,350 $1,286,844 $1,338,318 $1,153,186 $1,205,913 $1,291,094 $1,368,018 -$700,943 -$700,943 -$700,943 $452,244 $504,970 $590,152

GENERAL DATA Purchase Price Loan % Loan Amount Interest rate Term/years Term/months Monthly PMT Annual DS Before Tax Cash Flows: Potential Gross Income Vacancy & Credit Losses Other Income Effective Gross Income Operating Expenses Net Operating Income Debt Service Before Tax Cash Flow $10,200,000 75.00% $7,650,000 7.875% $58,412 $700,943 25 300 Year 1 $2,340,000 $234,000 $10,000 Year 2 $2,433,600 $219,024 $10,000 $2,116,000 $2,224,576 $1,100,000 $1,144,000 $1,016,000 $1,080.576 -$700,943 -$700,943 $315,057 $379,633 What is the Unlevered IRR (IRRO)? What is the Levered IRR (IRRe)?__ BUILDING DATA Bldg RSF OE/RSF Rents PSF Year 3 $2,535,811 $202,865 $10,000 90,000 $12.22 $26.00 Year 4 $2,644,851 $211,588 $10,000 Year 5 $2,761,225 $193,286 $10,000 What is the Investment Value of the equity (GPVe) at the stated discount rate? Reversion Data Going Out Cap Rate 10.00% Investors Discount Rate 12.00% Year 6 $2,899,286 $202,950 $10,000 $2,706,336 $2,342,946 $2,443,263 $2,577,939 $1,189,760 $1,237,350 $1,286,844 $1,338,318 $1,153,186 $1,205,913 $1,291,094 $1,368,018 -$700,943 -$700,943 -$700,943 $452,244 $504,970 $590,152

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

Section: Chapter Questions

Problem 8EP

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Year Net Cash Flow Discount Factor Present Value (using the factor) Present Value (using Excel formula) 0 $ (3,500,000.00) 1 $ (3,500,000.00) ($3,500,000.00) 1 $ 900,000.00 0.90909 $ 818,181.00 $818,181.82 2 $ 900,000.00 0.82645 $ 743,805.00 $743,801.65 3 $ 900,000.00 0.75131 $ 676,179.00 $676,183.32 4 $ 900,000.00 0.68301 $ 614,709.00 $614,712.11 5 $ 900,000.00 0.62092 $ 558,828.00 $558,829.19 Net Present Value $ (88,298.00) $ (88,291.91) 3. Now assume that inflation is estimated as a 5% increase each year (starting with Year 1) for the entire 5 years. Calculate the new net cash flow values for each year. start with 5% increase for Year 1 net cash flow. Year Net Cash Flow 0 $…
Year Net Cash Flow Discount Factor Present Value (using the factor) Present Value (using Excel formula) 0 $ (3,500,000.00) 1 $(3,500,000.00) ($3,500,000.00) 1 $900,000.00 0.90909 $818, 181.00 $818, 181.82 2 $ 900,000.00 0.82645 $743,805.00 $743, 801.65 3 $900,000.00 0.75131 $676, 179.00 $676, 183.32 4 $ 900,000.00 0.68301 $614,709.00 $614,712.11 5 $900,000.00 0.62092 $558, 828.00 $558,829.19 Net Present Value $(88,298.00) $(88,291.91) 3. Now assume that inflation is estimated as a 5% increase each year (starting with Year 1) for the entire 5 years. Calculate the new net cash flow values for each year. Hint: You should start with 5% increase for Year 1 net cash flow.
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DIRECTION: Compute the following PROFITABILITY RATIOS Gross Margin= Gross Profit/Net Sales Net Profit Margin= Net Profit/ Net Sales Return on Equity= Profit/Shareholder's Equity Return on Asset= Profit/Total Asset TREND ANALYSIS Net Income Growth Rate Total Assets Growth Rate And also compute the percentage beside the columns December 31, December 31, PERCENTAGE 2021 2020 USD USD Assets Current assets Cash and cash equivalents 34,115,412 25,681,845 Short-term financial instruments 71,417,748 80,798,680 Short-term financial assets at amortized cost 2,944,705 2,409,853 Short-term financial assets at fair value through profit or loss 35,624 62,452 Trade receivables 35,585,565 27,065,012 Non-trade receivables 3,930,828 3,150,548 Prepaid expenses 2,042,001 1,980,685 Inventories 36,172,043 28,007,314 Other current assets 4,441,629 3,281,589 Assets held-for-sale - 812,370 Total Current Assets…
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AmountFinanced Number ofPayments MonthlyPayment FinanceCharge APR $18,300 72 $426.08 $ %