Discounted Cash Flow - Worst Case

Discounted Cash Flow - Worst Case
Year	0	1	2	3	4	5	6	7	8	9	10	11
Purchase Price	(1,250,000)
Potential Gross Income (PGI)		144,000	145,440	146,894	148,363	149,847	151,345	152,859	154,387	155,931	157,491	159,066
Other Income (OI or PGMI)		0	0	0	0	0	0	0	0	0	0	0
(Vacancy & Collection Loss) (VCL)		(7,200)	(7,272)	(7,345)	(7,418)	(7,492)	(7,567)	(7,643)	(7,719)	(7,797)	(7,875)	(7,953)
Effective Gross Income (EGI)		136,800	138,168	139,550	140,945	142,355	143,778	145,216	146,668	148,135	149,616	151,112
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)		108,000	108,792	109,586	110,382	111,181	111,981	112,782	113,586	114,391	115,197	116,005
(Debt Service) (DS)		(62,123)	(62,123)	(62,123)	(62,123)	(62,123)	(62,123)	(62,123)	(62,123)	(62,123)	(62,123)	(62,123)
Before Tax Cash Flow	(312,500)	45,877	46,669	47,463	48,259	49,058	49,858	50,660	51,463	52,268	53,075	53,882
Sales Price	1,035,761
Loan Balloon Payment	(482,508)
Before Tax Sales Revenue	553,253
	Unleveraged Cash Flow			Leveraged Cash Flow
	Time	$		Time	$
	0	(1,250,000)		0	(312,500)
	1	108,000		1	45,877
	2	108,792		2	46,669
	3	109,586		3	47,463
	4	110,382		4	48,259
	5	111,181		5	49,058
	6	111,981		6	49,858
	7	112,782		7	50,660
	8	113,586		8	51,463
	9	114,391		9	52,268
	10	1,150,959		10	606,328
	IRR	0.0769		IRR	0.1866
	NPV	(168,815)		NPV	200,939