R2485240 r2429780 r2370413 r2306730 45 cash flow

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R2,485,240 - R2,429,780 - R2,370,413 - R2,306,730 4.5 CASH FLOW STATEMENT PROFORMA CASH FLOW STATEMENT yea r 0 1 2 3 4 5 Annual Gross Rental Income n/a R1,382,400 R1,423,872 R1,466,588 R1,510,586 R1,555,903 Vacancy and Collection Loses n/a -R69,120 -R71,194 -R73,329 -R75,529 -R77,795 Effective Rental n/a R1,313,280 R1,352,678 R1,393,259 R1,435,057 R1,478,108 Operating Expenses n/a -R55,540 -R57,206 -R58,922 -R60,690 -R62,511 Net Operating Income n/a R1,257,740 R127,444 R1,334,336 R1,374,366 R1,415,597 Debt Service n/a - R3,813,074 R94,732 R94,732 R94,732 R94,732 Income Tax Liability n/a R447,734 R438,572 R428,785 R418,308 R407,070 10
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Equity Dividend (cash to owner) n/a - R2,107,600 R660,747 R1,857,853 R1,887,406 R1,917,399 Down Payment/Reversion 0 n/a n/a n/a n/a n/a Total Cash Flow to Owner 0 - R2,107,600 R660,747 R1,857,853 R1,887,406 R1,917,399 Purchasing Power Adjustment n/a R1 R1 R1 R1 R1 Real Cash Flow to Owner 0 - R2,046,214 R622,818 R1,700,199 R1,676,936 R1,653,966 4.6 NET PRESENT VALUE / INTERNAL RATE OF RETURN DECISION ANALYSIS FACTORS year 0 1 2 3 4 Real Cash Flow to Owner 0 (2,046,214) 622,818 1,700,199 1,676,936 Present Value of Real Cash Flow 0 (1,894,643) 533,966 1,349,672 1,232,598 NPV of Real Cash Flow: R 4,846,706 After Tax Real Internal Rate of Return: 59.48% 4.7 LOAN AMORTIZATION CALCULATOR MORTGAGE LOAN AMORTIZATION SCHEDULE yea r 0 1 2 3 4 Balance Owed, beginning of year 27,949,778 27,770,175 27,567,223 27,337,887 Annual Mortgage Payment 3,813,074 3,813,074 3,813,074 3,813,074 Interest Portion of Payment (3,633,471) (3,610,123) (3,583,739) (3,553,925) Amortization of principal 179,603 202,952 229,335 259,149 Balance Owed, end of year 27,770,175 27,567,223 27,337,887 27,078,738 4.8 GRAPHICAL REPRESENTATION 11
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year 0 1 2 3 4 5 6 7 8 9 10 11 -R3,000,000 -R2,000,000 -R1,000,000 R0 R1,000,000 R2,000,000 R3,000,000 Key Financial Indicators Annual Gross Rental Income Net Operating Income Total Cash Flow to Owner Real Cash Flow to Owner 4.8 CONCLUSION Emalangeni Investments believes that its long-term prospects for continuing a successful business are excellent. Emalangeni Investments believes this industry, and the strong foundation of experience that management and advisors brings us, lends itself to position results over the long-term. With a market-sensitive management team and excellent systems in place to monitor competitive shifts in trends. Find attached the excel version of the financial model. 12
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