Building on the work you completed for the prior question, what is the TIER 2 Year 4 Remaining Cash to Distribute? ** SAVE YOUR EXCEL WORK TO ASSIST WITH SUBSEQUENT TEST QUESTIONS **

An investment is made for $1,000, split 10% from the Sponsor and 90% from the Investor. There is a 9% non-compounded, cumulative Annual Preferred Return, but it is based only on the Investor’s investment, and is paid only to the Investor. The property is held for 4 years with an annual non-escalating cash flow of $100 in Year 1 through Year 3. In Year 4, net cash flow of $80 is collected. The asset is sold in Year 5 prior to the collection of any operating cash flows. The sale generates net sales proceeds of $2,000. What are the Residual Cash Flows available for Payment Types B and C in Year 5?

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 9% Annual cumulative, non-compounding Preferred Return structure is assumed, based only on the Investor’s investment, and paid only to the Investor. What is the Residual Cash Flow available for Payment Types B and C at the end of Year 4?

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