Click on File/New Assumptions on menu bar.

Type in the specifications below, pressing enter after each completed entry, and click OK.

• Investment Name - 'Apartment Development'
• Square Feet or Units - '100'
• Fiscal Year Starts on - 'Jan 1'
• Comments - Leave Blank.

• Price of Property - '0' (always 0 for developments)
• Closing Costs - '0' (always 0 for developments)
• Date of Acquisition - '1.10'
• Holding Period - '10'
• Inflation Rate - '4'
• Sale Price Method- Select Capitalize Next Year's NOI from the list
• Sale Price Parameter - '7'
• Selling Costs - '6'

Verifying Your Entries - Click on Basic button to bottom right, and wait a second. When the Basic Analysis screen appears, choose the Vertical view (at the bottom right of the screen). When done, click on Exit.

Click on the 'T' button next to General Vacancy & Credit Loss, type the following information.

• Tax Rate First Year = Federal “35” State “0”
• Tax Rate Following Years - Federal “35” State “0”
• Capital Gain Rate - Federal “15” State “0”
• Cost Recovery Recapture Rate - Federal “25” State “0”

Click Paste to paste the Tax Rates.

• General Vacancy & Credit Loss - “0”
• Present Value Discount Rate Before Debt - “10”
• Present Value Discount Rate Before Tax - “10”
• Present Value Discount Rate After Tax - “10”

Select on Edit / Development Spending (The Development Spending Dialog will appear.)

Type in the specifications below, pressing enter after each completed entry.

Click OK

If you check the Draw every checkbox above the grid, planEASe will generate a Construction Draw Page in your Assumption Set according to the instructions you enter here. Once that has been done, you may use Basic, Detail, Sensitivity and Risk Analysis on the Construction Draw Loan as you would with any other loan. If you generate a Construction Draw Loan, it will be inserted as the first loan in your Assumption Set. You cannot enter a Construction Draw Page in any other way. You can, however, edit any of the assumption values shown, once the Page has been generated by the Development Spending Dialog, and the Construction Draws generated in the resulting analysis will correspond to the edited values. Additionally, appropriate assumption values of the Construction Draw may also be varied in Sensitivity and Risk analyses.

Two lease up methods will be shown:

1. Lease up with continuation pages and vacancy factor
2. Lease up with the Ramp Beginning to End Growth Method

Continuation Page - allows you to plan multi-step loans, revenues and expenses. A Continuation Page is denoted by a Revenue/Expense Start Date or Loan Origination Date of minus one (-1.00), which you can think of as "look back one page and start this Loan / Revenue / Expense when that one ended". Expressed another way, use a Continuation Page whenever you want to say "and then", as in "the vacancy rate will be 10% for the first two years and then will be 5%".

Ramp Growth - where growth ramps up (or down) linearly from one time and dollar amount you specify to another time and dollar amount you specify. This method is typically used in projecting development start-ups. Here you tell planEASe the starting amount (in the Revenue/Expense Amount), the time length of the ramp (in the Revenue/Expense Period), and either the ending amount (@ Begin$ to End$) or the dollar increase per month (@ $/Month) in the Revenue/Expense Growth Rate). As you may remember, planEASe does not compute any page for which the Revenue/Expense amount is zero (unless it is a continuation page). Therefore, if you wanted to ramp up from zero you should enter a very small amount (for instance, 0.0000001) as the Revenue/Expense amount. Entering an otherwise small amount such as 1.00 or 0.01 will lead to wrong results because, since it is less than 100, it will be interpreted as a percentage of the Price of Property and be converted into a correspondingly large number.

Expenses as a % of Revenues - Sometimes (for quick and dirty analysis) you may want to specify the expenses as a simple percentage of the revenues. You can do so by setting the Management Fee in the revenue page(s) to the desired percentage. The resulting expense shows in the Operating Expense item in Basic Analysis. A more detailed approach yielding separately named expenses uses the Expense as Percentage of Effective Income Revenue Page SubType.

Performs 'What if' for any assumption in your analysis versus any measure, such as Rate of Return (IRR or MIRR), Net Present Value (NPV), Net Capitalization Rate, Cash on Cash, Debt Coverage Ratio, or Loan Amount. Sensitivity Analysis shows how these measures vary with a change in any of the assumptions like Price of Property, Holding Period, Cap Rate at Sale, Renewal Probability, Vacancy, TI's, etc. Sensitivity Analysis reports a one page table and graph showing the relationship between the assumption value and the chosen measure.

Perform Monte Carlo Risk Analysis with any assumptions you choose versus any measure, such as Rate of Return (IRR or MIRR), Net Present Value (NPV), etc. Risk Analysis allows you to investigate how these measures vary with a change in assumptions like Holding Period, Cap Rate at Sale, Renewal Probability, Vacancy, TI's, etc. Risk Analysis provides a one page table and graph which shows the probability of achieving any level for the chosen measure.

Detail and Basic Analysis

• Detail Analysis (Loans, Depreciation, Revenues, and Expenses) - Creates reports for the projection results in detail areas of: Depreciation, Capital Spending, Tax Credits, Draw and Repay, Loan Interest, Loan Principal, Debt Service, Amortized Points, Revenue, Taxable Income, Management Fee, Expense, and Taxable Expense.

• Basic Analysis (IRR, NPV, MIRR) - Creates reports that include Before Tax Cash Flow Projection, Taxable Income Projection, and After Tax Cash Flow Projection. Measures shown include Internal Rate of Return (IRR), Net Present Value (NPV) and Modified Rate of Return (MIRR), all before and after tax.

• Reports a complete income statement for 1 to 99 years, depending on the chosen holding period. Shows Income, Reimbursements, Expenses, NOI, Debt Service, Capital Expenditures, Before Tax Cash Flow, After Tax Cash Flow, and Sale Proceeds.. Then computes Capitalization Rate, Cash on Cash, Gross Income Multiple, Debt Coverage Ratio, Breakeven Occupancy, Loan Balance/Property Value, NOI/Property Value, Gross Income Multiple, Operating Expense Ratio, Internal Rate of Return (IRR), and Net Present Value (NPV) before and after tax for each of the years. Also shows Common Size and $/SquareFoot Reports. These reports may be configured in more than 5,000 variations by setting the list and checkboxes below the report on screen. MILLIONS of user configurable graphs are available here by adding the Graphics Extension.

• Reports a complete income statement for 1 to 99 years, depending on the chosen holding period. Shows Income, Reimbursements, Expenses, NOI, Debt Service, Capital Expenditures, Before Tax Cash Flow, After Tax Cash Flow, and Sale Proceeds.. Then computes Capitalization Rate, Cash on Cash, Gross Income Multiple, Debt Coverage Ratio, Breakeven Occupancy, Loan Balance/Property Value, NOI/Property Value, Gross Income Multiple, Operating Expense Ratio, Internal Rate of Return (IRR), and Net Present Value (NPV) before and after tax for each of the years. Also shows Common Size and $/SquareFoot Reports. These reports may be configured in more than 5,000 variations by setting the list and checkboxes below the report on screen. MILLIONS of user configurable graphs are available here by adding the Graphics Extension.

• shows an Analysis of Sale Proceeds and Analysis of Capital Gain Results. Computes Net Sale Price for Tax Purposes, Adjusted Basis at Sale, Cost Recovery Taken, Cost Recovery Recapture Tax, and Tax on Adjusted Net Capital Gain, to show After Tax Cash Proceeds of Sale. Tax considerations may be eliminated by choosing 'Before Tax' instead of 'After Tax' at the screen top right. Pie Charts are available here by adding the Graphics Extension.

• Shows the Revenues, Expenses, Net Operating Income (NOI), Debt Service and Cash Flow Before Tax for the Property for the chosen time period (Month, Quarter or Year). Computes Capitalization Rate, Adj. Capitalization Rate, Cash on Cash Before Tax, Adj. Cash on Cash Before Tax, Cash on Cash After Tax, Adj. Cash on Cash After Tax, Accounting RoR Before Tax, Accounting RoR After Tax, Current RoR Before Tax, Current RoR After Tax, Debt Coverage Ratio, Breakeven Occupancy, Loan Balance/Property Value, NOI/Property Value, Gross Income Multiple, Operating Expense Ratio, IRR and NPV Before Debt, Before Tax or After Tax. Many Pie Charts are available here by adding the Graphics Extension.

• Shows (in English) the assumption values used to generate your analysis. 'Show Page Notes' allows you to generate the report with or without the optional page notes you can attach to each assumption page. 'Refer Revenues' allows you to skip the revenue assumption pages when you would prefer to use the Lease Analysis Reports to document your revenue assumptions instead.

• TitlePages is a Multiple Document Interface (MDI) word processor incorporated into planEASe to enable you to process and print documents that use the same Page Setup as your planEASe Reports and Graphs. Thus you may produce planEASe documents, reports and graphs bearing consecutive page numbers with the same appearance so that the entire presentation package appears to have been produced by the same software (as indeed it has).