In this scenario, you will encounter a real-world example based on an actual test used by a private equity fund. This exercise reflects the kind of analysis typically performed when building a Discounted Cash Flow (DCF) model for a real estate investment. As part of your day-to-day responsibilities, you would be asked to forecast cash flows, calculate net operating income (NOI), and determine the appropriate discount rate to estimate the present value of future cash flows. The example requires you to evaluate the financial feasibility of a real estate project or investment, incorporating factors like rental income, operating expenses, capital expenditures, and potential resale value. This test is designed to assess your ability to apply financial modelling and valuation techniques used by private equity funds to make informed investment decisions in real estate