Basic Analysis (IRR, NPV, MIRR)
Creates reports that include Before Tax Cash Flow Projection, Taxable Income Projection, and After Tax Cash Flow Projection. Measures shown include Internal Rate of Return (IRR), Net Present Value (NPV) and Modified Rate of Return (MIRR), all before and after tax.
Basic Analysis allows you to view/print the overall cash
flow projection for the investment in any of three Views:
Vertical, Horizontal, or Graph. To change between these views,
just click the appropriate Basic View Button (at the bottom
right of the screen). Here you are seeing the Basic Analysis
in Vertical View (the Before Tax Cash Flow Projection, Page 1)
for the
Redondo Professional Building, an investment on your
planEASe System Disk saved under the Assumption Set name
"OFFICES". The Basic Analysis Screen contains a Basic View
Control at the right bottom of the screen which allows you to
switch between the three Views of your analysis:
Horizontal View organizes the Cash Flow
Projection in a one page spreadsheet format, with the years
running horizontally across the top of the page, and each of
the 3 (or 5 for Partnership/LLC analyses) pages presented as a separate horizontal section
of the spreadsheet.
Vertical View
organizes the Cash Flow Projection with the years running
vertically down the side of the page and presents the
information as separate pages (3 pages
for the Real Estate Investment Analysis,
models RUI and RUM, and 5 pages for the Partnership/LLC Analysis, models RPI, RPM, RPR, and RPF). You may view any
of these pages by pressing the corresponding Page Button at
the bottom of the screen.
Graph View (available if you have purchased the
optional Graphics Extension) allows you to display/print four different graphs of
data contained in your Basic Analysis. Any Debt Funding or Repayment and/or any Capital
Spending planned during the Holding Period is eliminated from these graphs so that they
reflect the results of ongoing operations rather than such one time events. The Graphs
are:
- Allocation of Effective Income is typically displayed as a stacked graph
showing how the total Effective Income in each year is allocated to pay the Expenses and
Debt Service on the property, leaving the remaining cash income. Since the Effective
Income less Expenses is defined as Net Operating Income, the intersection of the Expense
and Debt Service stacks shows NOI as well. Setting the #’s control for the graph to
Cumulative shows numbers for the Effective Income, NOI, and Cash Flow levels, while
setting it to Normal shows the annual Income, Debt Service and Expense levels.
- Cash on Cash is the year’s Net Income divided by the original
Investment (the amount in the "Cash Flow Before Tax" item at the "Buy"
time).
- Debt Coverage Ratio is the year’s Net Operating Income divided by
the year’s Debt Service.
- Net Capitalization Rate is the year’s Net Operating Income divided by
the Price of Property.
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Creates reports that include Before Tax Cash Flow Projection, Taxable Income Projection, and After Tax Cash Flow Projection. Measures shown include Internal Rate of Return (IRR), Net Present Value (NPV) and Modified Rate of Return (MIRR), all before and after tax.
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