Fig12-48 - $16,380 $17,035 $17,717 $18,425 Taxable gain...

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Data Page 1 Acquisition Data Land Value $30,000 Buildings/Improvements $140,000 Purchase Price $170,000 Financing Data Down Payment $40,000 Amount Financed $130,000 APR 11.0% Term 20 Annual Payment $16,325 Economic Assumptions Annual Gross Rental Income $35,000 Rental Income Growth Rate 4.0% 3.0% Operating Expenses 45.0% Tax Rate 28.0% Property Value Growth Rate 2.5% Sales Commission 5.0% Discount Rate 12.0% Foxridge Investment Group
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Model Page 2 Cash Flows in Year Financial Summary 1 2 3 4 5 Sales price @ year 5 $192,339 Gross Income $35,000 $36,400 $37,856 $39,370 $40,945 Less: Less: Selling expense $9,617 $1,050 $1,092 $1,136 $1,181 $1,228 Tax basis $144,545 Operating Exp. $15,750
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Unformatted text preview: $16,380 $17,035 $17,717 $18,425 Taxable gain $38,177 Net Operating Income $18,200 $18,928 $19,685 $20,473 $21,291 Less: Proceeds from sale $182,722 Depreciation $5,091 $5,091 $5,091 $5,091 $5,091 Less: Interest $14,300 $14,077 $13,830 $13,556 $13,251 Taxes $10,690 Taxable Income ($1,191) ($240) $764 $1,826 $2,950 Loan payoff $117,390 Net cash from sale $54,643 Taxes Paid (Saved) ($333) ($67) $214 $511 $826 PV of sale proceeds $31,006 Principal Paid $2,025 $2,248 $2,495 $2,769 $3,074 PV of cash flows $11,001 Less: Original Equity $40,000 Net Cash Flow $2,209 $2,670 $3,146 $3,636 $4,141 Total NPV $2,007...
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This note was uploaded on 04/19/2011 for the course CBA 0060 taught by Professor Barrymitnick during the Spring '09 term at Pittsburgh.

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Fig12-48 - $16,380 $17,035 $17,717 $18,425 Taxable gain...

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