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planEASe Commercial Real Estate Software > Product Descriptions > planEASe Base > Basic Analysis (IRR, NPV, MIRR)

# 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:

*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.*

**Horizontal 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*

**Vertical View***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.

*(available if you have purchased the optional*

**Graph View***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:

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.**Allocation of Effective Income**is the year’s Net Income divided by the original Investment (the amount in the "Cash Flow Before Tax" item at the "Buy" time).**Cash on Cash**is the year’s Net Operating Income divided by the year’s Debt Service.**Debt Coverage Ratio**is the year’s Net Operating Income divided by the Price of Property.**Net Capitalization Rate**