| File:zpirr001 |
Copyright
(c) / Created by Zeppelin Partners Limited : Phone (852)
37576388, Fax (852)37576399, E-Mail stephenchung@zeppelin.com.hk, Webpage at
www.real-estate-tech.com. |
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| CALCULATING
THE APPROXIMATE INTERNAL RATE(S) OF RETURN (IRR) |
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| Page : |
Summary |
|
| Proforma : |
Finding out the
approximate IRR given certain acquisition price, disposition price,
investment time period, and / or recurrent income % yield assumptions. |
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| Date : |
August 1999 |
Updated : |
n/a |
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| Remarks : |
For rough indication
only. Detail / accurate calculations require further studies or more complex
approaches. |
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|
The Proforma is meant to
help assess relevant business or investment opportunities and is for rough
general applications only. |
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The User is required to
provide certain data / figures in the INPUT section and the BRIEF
INSTRUCTIONS are as follows : |
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|
(1) INPUT the acquisition
/ purchase $amount e.g. the purchase $price (estimated or actual; future,
current or past) of a property. |
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|
(2) INPUT the disposition
/ selling $amount e.g. the selling $price (estimated or actual; future,
current or past) of the same property. |
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|
(3) INPUT the investment
time period i.e. numbers of years the investment is to be held. This is a
dummy input i.e. not used for calculations but a reference for the User only. |
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(4) OPTIONAL INPUT : an
"averaged-out" % yield which best reflects the (estimated or
actual) recurrent income e.g. rents. |
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NO INPUT is
needed IF there is no recurrent income. |
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(5) OUTPUT : Go to the
correct "Investment Time in Years" for the appropriate IRR. |
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The Proforma requires
complimentary computer hardware and software to operate. |
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No liability /
responsibility is assumed by Zeppelin or its staff / consultants for any
errors, mistakes, bugs, virusus, and the like IF contained in the Proforma,
or for their subsequent damages or claims. |
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No marketing, copying,
duplication and the like is permitted without the written formal consent and
approval from Zeppelin / the Author. |
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INPUT cells are in GREEN. |
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| INPUT : |
Acquistion $ = |
100 |
Disposition $ = |
200 |
Investment Time Frame in
Years : |
1 |
(For reference only) |
Yield % IF any = |
0.00% |
(Based on Acquisition $) |
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|
|
| ------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
|
| OUTPUT : |
Investment
Time Frame in Years : |
|
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
14 |
15 |
|
| ------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
|
| IRR = |
100.00% |
41.42% |
25.99% |
18.92% |
14.87% |
12.25% |
10.41% |
9.05% |
8.01% |
7.18% |
6.50% |
5.95% |
5.48% |
5.08% |
4.73% |
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| ================= |
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| SUMMARY
OF DIFFERENT NOMINAL RETURNS, INVESTMENT TIMEFRAMES, AND THE CORRESPONDING
IRR (Assuming No Recurrent Income) |
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|
| IRRs |
Investment
Time Frame in Years : |
|
|
|
| Nominal Return % |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
14 |
15 |
|
|
| ------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
------------------------------ |
|
| 10.00% |
10.00% |
4.88% |
3.23% |
2.41% |
1.92% |
1.60% |
1.37% |
1.20% |
1.06% |
0.96% |
0.87% |
0.80% |
0.74% |
0.68% |
0.64% |
|
|
| 20.00% |
20.00% |
9.54% |
6.27% |
4.66% |
3.71% |
3.09% |
2.64% |
2.31% |
2.05% |
1.84% |
1.67% |
1.53% |
1.41% |
1.31% |
1.22% |
|
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| 30.00% |
30.00% |
14.02% |
9.14% |
6.78% |
5.39% |
4.47% |
3.82% |
3.33% |
2.96% |
2.66% |
2.41% |
2.21% |
2.04% |
1.89% |
1.76% |
|
| 40.00% |
40.00% |
18.32% |
11.87% |
8.78% |
6.96% |
5.77% |
4.92% |
4.30% |
3.81% |
3.42% |
3.11% |
2.84% |
2.62% |
2.43% |
2.27% |
|
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| 50.00% |
50.00% |
22.47% |
14.47% |
10.67% |
8.45% |
6.99% |
5.96% |
5.20% |
4.61% |
4.14% |
3.75% |
3.44% |
3.17% |
2.94% |
2.74% |
|
|
| 60.00% |
60.00% |
26.49% |
16.96% |
12.47% |
9.86% |
8.15% |
6.94% |
6.05% |
5.36% |
4.81% |
4.37% |
3.99% |
3.68% |
3.41% |
3.18% |
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| 70.00% |
70.00% |
30.38% |
19.35% |
14.19% |
11.20% |
9.25% |
7.88% |
6.86% |
6.07% |
5.45% |
4.94% |
4.52% |
4.17% |
3.86% |
3.60% |
|
|
| 80.00% |
80.00% |
34.16% |
21.64% |
15.83% |
12.47% |
10.29% |
8.76% |
7.62% |
6.75% |
6.05% |
5.49% |
5.02% |
4.63% |
4.29% |
4.00% |
|
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| 90.00% |
90.00% |
37.84% |
23.86% |
17.41% |
13.70% |
11.29% |
9.60% |
8.35% |
7.39% |
6.63% |
6.01% |
5.49% |
5.06% |
4.69% |
4.37% |
|
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| 100.00% |
100.00% |
41.42% |
25.99% |
18.92% |
14.87% |
12.25% |
10.41% |
9.05% |
8.01% |
7.18% |
6.50% |
5.95% |
5.48% |
5.08% |
4.73% |
|
|
| 125.00% |
125.00% |
50.00% |
31.04% |
22.47% |
17.61% |
14.47% |
12.28% |
10.67% |
9.43% |
8.45% |
7.65% |
6.99% |
6.44% |
5.96% |
5.56% |
|
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| 150.00% |
150.00% |
58.11% |
35.72% |
25.74% |
20.11% |
16.50% |
13.99% |
12.14% |
10.72% |
9.60% |
8.69% |
7.93% |
7.30% |
6.76% |
6.30% |
|
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| 175.00% |
175.00% |
65.83% |
40.10% |
28.78% |
22.42% |
18.36% |
15.55% |
13.48% |
11.90% |
10.65% |
9.63% |
8.80% |
8.09% |
7.49% |
6.98% |
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| 200.00% |
200.00% |
73.21% |
44.22% |
31.61% |
24.57% |
20.09% |
16.99% |
14.72% |
12.98% |
11.61% |
10.50% |
9.59% |
8.82% |
8.16% |
7.60% |
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| 250.00% |
250.00% |
87.08% |
51.83% |
36.78% |
28.47% |
23.22% |
19.60% |
16.95% |
14.93% |
13.35% |
12.06% |
11.00% |
10.12% |
9.36% |
8.71% |
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| 300.00% |
300.00% |
100.00% |
58.74% |
41.42% |
31.95% |
25.99% |
21.90% |
18.92% |
16.65% |
14.87% |
13.43% |
12.25% |
11.25% |
10.41% |
9.68% |
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| 350.00% |
350.00% |
112.13% |
65.10% |
45.65% |
35.10% |
28.49% |
23.97% |
20.68% |
18.19% |
16.23% |
14.65% |
13.35% |
12.27% |
11.34% |
10.55% |
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| 400.00% |
400.00% |
123.61% |
71.00% |
49.53% |
37.97% |
30.77% |
25.85% |
22.28% |
19.58% |
17.46% |
15.76% |
14.35% |
13.18% |
12.18% |
11.33% |
|
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| 450.00% |
450.00% |
134.52% |
76.52% |
53.14% |
40.63% |
32.86% |
27.58% |
23.75% |
20.85% |
18.59% |
16.76% |
15.26% |
14.01% |
12.95% |
12.04% |
|
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| 500.00% |
500.00% |
144.95% |
81.71% |
56.51% |
43.10% |
34.80% |
29.17% |
25.10% |
22.03% |
19.62% |
17.69% |
16.10% |
14.78% |
13.65% |
12.69% |
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