Argus Calculation Question - Vending Machines
How would you go about answering the question for calculating miscellaneous revenues:
If vending machines generate $500 a month in additional revenue, which is 100% variable, what are the projected revenues for years 1 through 4?
Additional info: - Analysis begins: January 2020 - 75,000 total square feet - General inflation rate: 3%, starting in 2021 - 100% occupancy
I know the answers are: $5,700, $6,180, $6,153, $6,338, just unsure how to get to them. Thank you!
The calculation is as follows:
$500 per month, at an IRR of 6.2% gives you an LBO equity percentage of $5,700.
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