Apartment Excel Analysis
Apartment Excel Analysis
Apartment Excel Analysis
Cost of Capital 8%
OUTPUTS
NPV 12,120.38
IRR 8.4545%
Low NPV Sensitivity
411.84 269.16
9,827.46 4,643.26
12,230.28 - 222.53
- 7,333.74 0.32
Side Effect - changes to expenses of other 2 apartments:
Current Maintenance 60 per month
With third apartment 50 per month
Change 10 per month reduction in expenses
Proceeds 600,000
Tax (117,000)
Net Cash Flow 483,000
Year 0 1 2 3 4 5 6 7 8 9 10
Rental Income 22,620 23,412 24,231 25,079 25,957 26,865 27,806 28,779 29,786 30,829
Lost Parking Income (240) (248) (257) (266) (275) (285) (295) (305) (316) (327)
Management Fee (905) (936) (969) (1,003) (1,038) (1,075) (1,112) (1,151) (1,191) (1,233)
Maintenance Expenses (180) (185) (191) (197) (203) (209) (215) (221) (228) (235)
Council Rates (875) (901) (928) (956) (985) (1,014) (1,045) (1,076) (1,108) (1,142)
EBITDA 20,420 21,140 21,886 22,657 23,456 24,283 25,139 26,025 26,942 27,892
Depreciation (14,000) (14,000) (14,000) (14,000) (14,000) (14,000) (14,000) (14,000) (14,000) (14,000)
EBIT 6,420 7,140 7,886 8,657 9,456 10,283 11,139 12,025 12,942 13,892
Income Tax at 30% (1,926) (2,142) (2,366) (2,597) (2,837) (3,085) (3,342) (3,607) (3,883) (4,168)
Net Income 4,494 4,998 5,520 6,060 6,619 7,198 7,797 8,417 9,060 9,724
Add Back Depreciation 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000
Operating Cash Flow 18,494 18,998 19,520 20,060 20,619 21,198 21,797 22,417 23,060 23,724
Capital Expenditure (350,000) 483,000
Net Cash Flow (350,000) 18,494 18,998 19,520 20,060 20,619 21,198 21,797 22,417 23,060 506,724
NPV 12,120
IRR 8.45%
rate NPV
0% $342,887.74
0.50% $313,498.12
NPV
1% $285,593.66 $400,000
1.50% $259,090.84
2% $233,911.30 $300,000
2.50% $209,981.42
3% $187,232.08 $200,000
3.50% $165,598.30
4% $145,019.00 $100,000
4.50% $125,436.79
5% $106,797.63 $0
0% 2% 4% 6% 8% 10% 12% 14% 16%
5.50% $89,050.72
6% $72,148.23 -$100,000
6.50% $56,045.15
7% $40,699.05 -$200,000
7.50% $26,070.01
8% $12,120.38
8.50% -$1,185.31
9% -$13,880.52
9.50% -$25,996.79
10% -$37,563.89
10.50% -$48,609.91
11% -$59,161.36
11.50% -$69,243.28
12% -$78,879.31
12.50% -$88,091.80
13% -$96,901.85
13.50% -$105,329.41
14% -$113,393.37
14.50% -$121,111.57
15% -$128,500.89
Scenario Summary
Current Values: BreakEven Rent BreakEven Selling Price
Changing Cells:
rent 435.00 389.97 435.00
rent_grow 3.50% 3.50% 3.50%
cost_grow 3.00% 3.00% 3.00%
Sales_price 600,000 600,000 562,619
Result Cells:
NPV_
IRR_ 12,120.38 0.00 - 0.00
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created. Changing cells for each
scenario are highlighted in gray.
Scenario Summary
Current Values: Base High Rent Low Rent
Changing Cells:
rent 435.00 435.00 478.50 391.50
rent_grow 3.50% 3.50% 3.50% 3.50%
cost_grow 3.00% 3.00% 3.00% 3.00%
Sales_price 600,000 600,000 600,000 600,000
Result Cells:
NPV_ 12,120.38 12,120.38 23,828.93 411.84
IRR_ 8.45% 8.45% 8.89% 8.02%
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created. Changing cells for each
scenario are highlighted in gray.
High Rent Growth Low Rent Growth High Cost Growth Low Cost Growth High Sales Price Low Sales Price
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