Location: Modesto, CA
For Sale Website:
The attached spreadsheet presents information regarding the financial forecast for AA Rhamco Storage Units located in Modesto, California. These storage units are currently available for sale at a price of $1,400,000. The attached spreadsheet contains a pro forma income statement, balance sheet, and other pertinent information for the future standing of this business. All information is based on assumptions made from research of the storage unit industry in California.
Based on the forecast, cost of capital (WACC) comes out to 5.26% and IRR comes out to 10.52%. This means the return on the investment is higher than what we would have to pay. Future Cash Flows discounted over time give us a Net Present Value of approximately $575,600. This means the investment would be like giving ourselves $575,600 today.
Based on the pro forma statements we created, this investment would prove to be very profitable in the long term. Based on our assumptions, we believe this business to be a beneficial investment and consider it to be a smart business move.