(CIS331 -SystmMdlngThry) Figures 4.2-4.5

(CIS331 -SystmMdlngThry) Figures 4.2-4.5 - Page 1 Control...

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Page 1 The Tuck School at Dartmouth Confidential 01/19/2012 Page 1 Control panel Cost quotes Choose building costs 78.50 $80.00 80.00 83.75 Sale multiple 12 NPV $11,472,032 Office Building Parameters Rate of increase 2002 2003 2004 2005 2006 Building cost per sq ft $80.00 Size of building 180,000 Rent per sq ft 5% $15.00 15.75 16.54 17.36 18.23 Operating expense per sq ft 6% $1.20 1.27 1.35 1.43 1.51 Vacancy rate -4% 30% 0.26 0.22 0.18 0.14 Percent financed 85% Mortgage rate 12% Sale multiple 12 Cost of capital 10% 2002 2003 2004 2005 2006 Cash Flow Gross income 1,890,000 2,097,900 2,321,865 2,562,982 2,822,406 Operating expense 216,000 228,960 242,698 257,259 272,695 Net operating income 1,674,000 1,868,940 2,079,167 2,305,722 2,549,710 Interest cost $1,464,720 $1,464,720 $1,464,720 $1,464,720 $1,464,720 Before-tax cash flow $209,280 $404,220 $614,447 $841,002 $1,084,990 Down payment (at time 0) $2,160,000 Sale price $30,596,526 Mortgage cost $12,240,000 End of year cash flows $209,280
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This note was uploaded on 01/19/2012 for the course COMPUTER S 100 taught by Professor Brown during the Spring '11 term at Strayer.

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(CIS331 -SystmMdlngThry) Figures 4.2-4.5 - Page 1 Control...

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