A company needs to immediately invest $800,000. The company will receive for the next 24 months a monthly income of $ 100,000 with a monthly operating cost of $ 60,000.

1. Calculate the flow of the asset on a monthly basis, considering the initial investment and the income and operating cost and calculate your annual IRR and multiple of money (MOIC).


2. A bank offers them a loan of 80% of the initial investment (reduces initial capital requirement). This loan is for a term of 24 months, with an annual interest rate of 11% payable monthly and mortgage rate payments (equal payments).

It is requested (2.1) Model bank debt;

(2.2) Calculate monthly interest (ISCR) and total payment (DSCR) company coverages;

(2.3) Determine the IRR and multiple of the bank.


3. Model the net profit that remains to the company after the payment of the debt and calculate the annual IRR and the multiple that remains to the company, given those returns and multiples, would you take the debt? Justify your answer