Discounted Cash Flow - Most Likely Case

Discounted Cash Flow - Most Likely Case
Year	0	1	2	3	4	5	6	7	8	9	10	11
Purchase Price	(1,187,500)
Potential Gross Income (PGI)		144,000	148,320	152,770	157,353	162,073	166,935	171,944	177,102	182,415	187,887	193,524
Other Income (OI or PGMI)		0	0	0	0	0	0	0	0	0	0	0
(Vacancy & Collection Loss) (VCL)		(2,880)	(2,966)	(3,055)	(3,147)	(3,241)	(3,339)	(3,439)	(3,542)	(3,648)	(3,758)	(3,870)
Effective Gross Income (EGI)		141,120	145,354	149,714	154,206	158,832	163,597	168,505	173,560	178,767	184,130	189,653
Operating Expenses (OE)		(28,800)	(29,376)	(29,964)	(30,563)	(31,174)	(31,798)	(32,433)	(33,082)	(33,744)	(34,419)	(35,107)
Net Operating Income (NOI)		112,320	115,978	119,751	123,643	127,658	131,799	136,071	140,478	145,023	149,711	154,546
(Debt Service) (DS)		(59,017)	(59,017)	(59,017)	(59,017)	(59,017)	(59,017)	(59,017)	(59,017)	(59,017)	(59,017)	(59,017)
Before Tax Cash Flow	(359,375)	53,303	56,961	60,734	64,626	68,641	72,782	77,054	81,461	86,006	90,694	95,530
Sales Price	1,379,879
Loan Balloon Payment	(458,383)
Before Tax Sales Revenue	921,496
	Unleveraged Cash Flow			Leveraged Cash Flow
	Time	$		Time	$
	0	(1,187,500)		0	(359,375)
	1	112,320		1	53,303
	2	115,978		2	56,961
	3	119,751		3	60,734
	4	123,643		4	64,626
	5	127,658		5	68,641
	6	131,799		6	72,782
	7	136,071		7	77,054
	8	140,478		8	81,461
	9	145,023		9	86,006
	10	1,529,590		10	1,012,191
	IRR	0.1160		IRR	0.2314
	NPV	125,128		NPV	413,894