Discounted Cash Flow - Best Case

Discounted Cash Flow - Best Case
Year	0	1	2	3	4	5	6	7	8	9	10
Purchase Price	(1,125,000)
Potential Gross Income (PGI)		144,000	149,760	155,750	161,980	168,460	175,198	182,206	189,494	197,074	204,957
Other Income (OI or PGMI)		0	0	0	0	0	0	0	0	0	0
(Vacancy & Collection Loss) (VCL)		(1,440)	(1,498)	(1,558)	(1,620)	(1,685)	(1,752)	(1,822)	(1,895)	(1,971)	(2,050)
Effective Gross Income (EGI)		142,560	148,262	154,193	160,361	166,775	173,446	180,384	187,599	195,103	202,907
Operating Expenses (OE)		(28,800)	(29,376)	(29,964)	(30,563)	(31,174)	(31,798)	(32,433)	(33,082)	(33,744)	(34,419)
Net Operating Income (NOI)		113,760	118,886	124,229	129,798	135,601	141,649	147,950	154,517	161,359	168,489
(Debt Service) (DS)		(55,911)	(55,911)	(55,911)	(55,911)	(55,911)	(55,911)	(55,911)	(55,911)	(55,911)	(55,911)
Before Tax Cash Flow	(406,250)	57,849	62,976	68,319	73,887	79,690	85,738	92,040	98,606	105,449	112,578
Sales Price	1,570,684
Loan Balloon Payment	(434,257)
Before Tax Sales Revenue	1,136,427
	Unleveraged Cash Flow			Leveraged Cash Flow
	Time	$		Time	$
	0	(1,125,000)		0	(406,250)
	1	113,760		1	57,849
	2	118,886		2	62,976
	3	124,229		3	68,319
	4	129,798		4	73,887
	5	135,601		5	79,690
	6	141,649		6	85,738
	7	147,950		7	92,040
	8	154,517		8	98,606
	9	161,359		9	105,449
	10	1,739,172		10	1,249,005
	IRR	0.1391		IRR	0.2389
	NPV	309,779		NPV	517,557