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| Investment Assumptions | ||
| Price of Property | Tenant Representation | |
| Date of Acquisition | 1 January 2002 | |
| Holding Period | 10 Years | |
| Inflation Rate | 4% per Year | |
| Sale Price Method | No Sale Price Specified | |
| Investor's Assumptions | ||
| Present Value Discount Rate | 10% per Year | |
| Tax Rate - First Year | 34% | |
| Tax Rate - Following Years | 34% | |
| Capital Gain Rate | 34% | |
| Cost Recovery Recapture Rate | 34% - Losses Taken Currently | |
| Work Letter Depreciation Assumptions | ||
| Depreciable Amount (44,926 SqFt @ $20.00/SqFt) | $898,520.00 | |
| Depreciable Life | 39 Years | |
| Depreciation Method | Straight Line | |
| Recapture Method | Depreciate Remaining Amount | |
| Depreciation Start Date | 1 February 2002 | |
| Waterfall Center Revenue Assumptions | ||
| Annual Revenue (44,926 SqFt @ ($18.00)/SqFt/Year) | ($808,668.00) | |
| Revenue Start Date | at Acquisition | |
| Revenue Period | 5 Years | |
| Revenue Growth Method | No Growth is Projected | |
| Waterfall Center Continued Revenue Assumptions | ||
| Annual Revenue (44,926 SqFt @ ($22.00)/SqFt/Year) | ($988,372.00) | |
| Revenue Start Date | Continuation | |
| Revenue Period | 5 Years | |
| Revenue Growth Method | No Growth is Projected | |
| Waterfall Center Security Deposit Revenue Assumptions | ||
| Annual Revenue (44,926 SqFt @ ($4.50)/SqFt/Year) | ($202,167.00) | |
| Revenue Start Date | at Acquisition | |
| Revenue Period | Until Projected Sale | |
| Revenue Growth Method | No Growth is Projected | |
| Waterfall Center Deposit Returned Revenue Assumptions | ||
| Annual Revenue (44,926 SqFt @ $4.50/SqFt/Year) | $202,167.00 | |
| Revenue Start Date | End of Lease | |
| Revenue Period | Until Projected Sale | |
| Revenue Growth Method | No Growth is Projected | |
| Buy | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | Sell | Total | |
| Before Tax Cash Flow Projection | |||||||||||||
| Investment and Sale | 0 | (898,520) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (898,520) |
| Effective Income | (202,167) | (808,668) | (808,668) | (808,668) | (808,668) | (808,668) | (988,372) | (988,372) | (988,372) | (988,372) | (988,372) | 202,167 | (8,985,200) |
| Operating Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash Flow Before Debt | (202,167) | (1,707,188) | (808,668) | (808,668) | (808,668) | (808,668) | (988,372) | (988,372) | (988,372) | (988,372) | (988,372) | 202,167 | (9,883,720) |
| Debt Service | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash Flow Before Tax | (202,167) | (1,707,188) | (808,668) | (808,668) | (808,668) | (808,668) | (988,372) | (988,372) | (988,372) | (988,372) | (988,372) | 202,167 | (9,883,720) |
| Taxable Income Projection | |||||||||||||
| Taxable Revenue | 0 | (808,668) | (808,668) | (808,668) | (808,668) | (808,668) | (988,372) | (988,372) | (988,372) | (988,372) | (988,372) | 0 | (8,985,200) |
| Taxable Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 0 | (20,159) | (23,039) | (23,039) | (23,039) | (23,039) | (23,039) | (23,039) | (23,039) | (23,039) | (22,079) | (671,970) | (898,520) |
| Ordinary Income | 0 | (828,827) | (831,707) | (831,707) | (831,707) | (831,707) | (1,011,411) | (1,011,411) | (1,011,411) | (1,011,411) | (1,010,451) | (671,970) | (9,883,720) |
| After Tax Cash Flow Projection | |||||||||||||
| Cash Flow Before Tax | (202,167) | (1,707,188) | (808,668) | (808,668) | (808,668) | (808,668) | (988,372) | (988,372) | (988,372) | (988,372) | (988,372) | 202,167 | (9,883,720) |
| Ordinary Income | 0 | (828,827) | (831,707) | (831,707) | (831,707) | (831,707) | (1,011,411) | (1,011,411) | (1,011,411) | (1,011,411) | (1,010,451) | (671,970) | (9,883,720) |
| Capital Gains | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxable Income | 0 | (828,827) | (831,707) | (831,707) | (831,707) | (831,707) | (1,011,411) | (1,011,411) | (1,011,411) | (1,011,411) | (1,010,451) | (671,970) | (9,883,720) |
| Taxes | 0 | 281,801 | 282,780 | 282,780 | 282,780 | 282,780 | 343,880 | 343,880 | 343,880 | 343,880 | 343,553 | 228,470 | 3,360,465 |
| Cash Flow After Tax | (202,167) | (1,425,387) | (525,888) | (525,888) | (525,888) | (525,888) | (644,492) | (644,492) | (644,492) | (644,492) | (644,819) | 430,637 | (6,523,255) |
| Rate of Return Before Debt (IRR) | 0.0% |
| Rate of Return Before Tax (IRR) | 0.0% |
| Rate of Return After Tax (IRR) | 0.0% |
| Net Present Value Before Debt @10% | (6,635,999) |
| Net Present Value Before Tax @10% | (6,635,999) |
| Net Present Value After Tax @10% | (4,575,774) |
The data and calculations presented herein, while not guaranteed,
have been obtained from sources we believe to be reliable.
Produced by planEASe for Windows 800-959-3273.
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