Sample Questions for Test on REFM Single Transaction Equity Joint Venture Waterfall Modeling Bootcamp

$1,000 is invested in a property. The property generates no Operating Cash Flow from Year 1 through Year 2. The property generates an Operating Cash Flow of $1,000 in Year 3. What is the IRR for this transaction as of the end of Year 3?

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$1,000 is invested in a property. The property generates $100 annually in Operating Cash Flow from Year 1 through Year 4. The asset is sold at the end of Year 4, generating Net Sales Proceeds of $1,000. What is the IRR for this project?

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$10,000 is invested in a project. The Operating Cash Flows generated are $1,000 annually. The owner hopes to achieve a Transaction-level IRR of 20.00%. If the project is held for 4 years and sold at the end of Year 4, what Net Sale Proceeds value will allow him to achieve his target IRR?

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A $10,000 investment is made in a property at Time 0, and the property is held for five years. The property returns $1,000 per year with an annual growth rate of 3.00%. If an IRR of 18.00% is achieved, what is the Project Net Cash Flow in Cell C6 as of the end of Year 5?

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If modeled with annual periods, the Preferred Return is the product of what two values?

A $1,000 investment is made in a property. The property is held for 4 years, generating annual non-escalating cash flows of $65 in each of Years 1 through 4. The asset is sold at the end of Year 4, generating net sale proceeds of $2,000. A 7% Annual cumulative, non-compounding Preferred Return structure is assumed, with participation by both the investor and the sponsor. What is the Remaining Unpaid Preferred Return at the end of Year 3?

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