Initial Cost 2,200,000

Expected Rate of Return

30.0%
Selling Price 3,050,000
Revenue 960,000
Oper./Maint. 268,500

Year Revenue Costs Total Discount

Cash Flow Factor
0 - 2,200,000 (2,200,000) 1.00
1 960,000 268,500 691,500 1.30
2 960,000 268,500 691,500 1.69
3 960,000 268,500 691,500 2.20
4 960,000 268,500 691,500 2.86
5 960,000 268,500 691,500 3.71
6 960,000 268,500 691,500 4.83
7 960,000 268,500 691,500 6.27
8 960,000 268,500 691,500 8.16
9 960,000 268,500 691,500 10.60
10 4,010,000 268,500 3,741,500 13.79
NPV Net Present
159,040.92
Function: Value:
IRR 32.24%

Questions:
What is the expected rate of return that makes NPV zero?
What is the occupancy rate that makes NPV zero?
What should be the monthly rental fee if we want to achieve 34% IRR?
 Revenue
100 horse stalls
1,000 monthly rental fee

Total Revenue: 960,000 TL annually

Discounted
Cash Flow Occupancy Rate 80%
(2,200,000)
531,923 Costs
409,172
314,747 Annual Operating Costs: 268,500 TL annually
242,113
186,241
143,262
110,202
84,771
65,208
271,401

159,041

32.24%
76%
1,042
Initial Cost 2,200,000
Expected Rate of Return 30.0%
Selling Price 3,050,000
Revenue 960,000
Oper./Maint. 268,500

Year Revenue Costs Total Discount

Cash Flow Factor
0 - 2,200,000 (2,200,000) 1.00
1 960,000 268,500 691,500 1.30
2 960,000 268,500 691,500 1.69
3 960,000 268,500 691,500 2.20
4 960,000 268,500 691,500 2.86
5 960,000 268,500 691,500 3.71
6 960,000 268,500 691,500 4.83
7 960,000 268,500 691,500 6.27
8 960,000 268,500 691,500 8.16
9 960,000 268,500 691,500 10.60
10 4,010,000 268,500 3,741,500 13.79
NPV Net Present
159,040.92
Function: Value:
IRR 32.24%

Questions:
What is the expected rate of return that makes NPV zero?
What is the occupancy rate that makes NPV zero?
What should be the monthly rental fee if we want to achieve 34% IRR?
 Revenue
100 horse stalls
1,000 monthly rental fee

Total Revenue: 960,000 TL annually

Discounted
Cash Flow Occupancy Rate 80%
(2,200,000)
531,923 Costs
409,172
314,747 Annual Operating Costs: 268,500 TL annually
242,113
186,241
143,262
110,202
84,771
65,208
271,401
159,041

32.24%
76%
1,042
Initial Cost 2,850,000
Expected Rate of Return 30.0%
Selling Price 4,500,000
Revenue
Oper./Maint.

Year Revenue Costs Total Discount Discounted

Cash Flow Factor Cash Flow
0
1
2
3
4
5
6
7
8
9
10
NPV Net Present
Function: Value:
IRR
Revenue
10,000 m2 rental zone
0.60 TL daily per m2

Total Revenue: TL annually

Occupancy Rate 70%

Costs

Total Fixed Costs: 665,000 TL annually

Initial Cost 2,850,000
Expected Rate of Return 30.0%
Selling Price 4,500,000
Revenue 1,533,000
Oper./Maint. 665,000

Year Revenue Costs Total Discount Discounted

Cash Flow Factor Cash Flow
0 - 2,850,000 (2,850,000) 1.00 (2,850,000)
1 1,533,000 665,000 868,000 1.30 667,692
2 1,533,000 665,000 868,000 1.69 513,609
3 1,533,000 665,000 868,000 2.20 395,084
4 1,533,000 665,000 868,000 2.86 303,911
5 1,533,000 665,000 868,000 3.71 233,778
6 1,533,000 665,000 868,000 4.83 179,829
7 1,533,000 665,000 868,000 6.27 138,330
8 1,533,000 665,000 868,000 8.16 106,408
9 1,533,000 665,000 868,000 10.60 81,852
10 6,033,000 665,000 5,368,000 13.79 389,385
NPV Net Present
159,878 159,878
Function: Value:
IRR 31.70%
Revenue
10,000 m2 rental zone
0.60 TL daily per m2

Total Revenue: 1,533,000 TL annually

Occupancy Rate 70%

Costs

Total Fixed Costs: 665,000 TL annually

Initial Cost 5,000,000
Expected Rate of Return 30.0%
Selling Price 4,500,000
Revenue
Oper./Maint.

Year Revenue Costs Total Discount Discounted

Cash Flow Factor Cash Flow
0
1
2
3
4
5
6
7
8
9
10
NPV Net Present
Function: Value:
IRR
Revenue
36,500 TL weekly leasing fee

Total Revenue: TL annually

Usage Rate 90%

Costs

Total Fixed Costs: 150,000 TL annually

Initial Cost 5,000,000
Expected Rate of Return 30.0%
Selling Price 4,500,000
Revenue 1,708,200
Oper./Maint. 150,000

Year Revenue Costs Total Discount Discounted

Cash Flow Factor Cash Flow
0 - 5,000,000 (5,000,000) 1.00 (5,000,000)
1 1,708,200 150,000 1,558,200 1.30 1,198,615
2 1,708,200 150,000 1,558,200 1.69 922,012
3 1,708,200 150,000 1,558,200 2.20 709,240
4 1,708,200 150,000 1,558,200 2.86 545,569
5 1,708,200 150,000 1,558,200 3.71 419,669
6 1,708,200 150,000 1,558,200 4.83 322,822
7 1,708,200 150,000 1,558,200 6.27 248,325
8 1,708,200 150,000 1,558,200 8.16 191,019
9 1,708,200 150,000 1,558,200 10.60 146,938
10 6,208,200 150,000 6,058,200 13.79 439,451
NPV Net Present
143,659 143,659
Function: Value:
IRR 30.94%
Revenue
36,500 TL weekly leasing fee

Total Revenue: 1,708,200 TL annually

Usage Rate 90%

Costs

Total Fixed Costs: 150,000 TL annually

The Discount Factor Formula - Broken Down

Interest 12%
Rate:

Year Method 1 Method 2

0 $100 =$100 $100
1 $112 =$100*(1+0.12) $112
2 $125 =$112*(1+0.12) $125
3 $140 =$125*(1+0.12) $140
4 $157 =$140*(1+0.12) $157
5 $176 =$157*(1+0.12) $176

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 Method 2 Method 3 (Shortcut)
=$100 $100 =$100
=100*(1+0.12) $112 =100*(1+0.12)
=100*(1+0.12)*(1+0.12) $125 =100*(1+0.12)^2
=100*(1+0.12)*(1+0.12)*(1+0.12) $140 =100*(1+0.12)^3
=100*(1+0.12)*(1+0.12)*(1+0.12)*(1+0.12) $157 =100*(1+0.12)^4
=100*(1+0.12)*(1+0.12)*(1+0.12)*(1+0.12)*(1+0.12) $176 =100*(1+0.12)^5

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