Period Type = 1

Acquisition Costs = 0

Other Costs = 0

Cash Flows =

Discount Rate =

Periodic Rate =

Term =

NPV =

NPV/Term =

NUS/Annuity =

Average Rental =

IRR =

Performs several basic investment return analyses for a property acquisition.

Analysis includes Net Present Value (NPV), NPV per Term, Net Uniform Series (NUS) per Annuity, Average Rental, and Internal Rate of Return (IRR).

- Period Type: Whether the entries are in total dollars or dollars per square foot (PSF), with entries on either a monthly or yearly basis.

- Acquisition Costs: Acquisition costs.

- Other Costs: Other costs (e.g. points, fees, commissions, concessions, etc.)

- Cash Flows: Cash flows. Column 1 is the cash flows. Enter each cash flow in its own row. If a second column is entered (in the form 1000;3) then the second column is the number of occurrences for that cash flow.

- Discount Rate: Annual discount rate expressed as a percentage.

- Periodic Rate: Discount rate expressed on a periodic basis, as determined by the Period Type.

- Term: Term of the cash flows.

- NPV: Net Present Value.

- NPV/Term: Net Present Value per term.

- NUS/Annuity: Net Uniform Series of payments or annuity. This is also known as net effective rental in Canada.

- Average Rental: Average rental without discounting.

- IRR: Internal Rate of Return expressed as an annual rate. You must have initial cash outflows to calculate IRR. (e.g. If Acquisition Costs plus Other Costs is 0 then IRR will display 0.)

An investment building cost $300,000 and will require $50,000 in repairs. Revenues from rents over the first five years are expected as follows: $50,000; $75,000; $100,000; $115,000; $125,000. With a discount rate of 6%, what would be the Net Present Value and Internal rate of Return for the building?

- Period Type: Total$/Year

- Acquisition Costs: $300,000.00

- Other Costs: $50,000.00

- Cash Flows:

50,000.00

75,000.00

100,000.00

115,000.00

125,000.00

- Discount Rate: 6.000%

The NPV is $32,379.52 and the IRR is 8.897%.

Period Type

Acquisition Costs

Other Costs

Cash Flows

Discount Rate

Periodic Rate

Term

NPV

NPV/Term

NUS/Annuity

Average Rental

IRR

-------------

Net Present Value

Net Uniform Series

Internal Rate of Return