Final Project (Real Estate 3400) 1. Individual Project: The final project will be due on November 22th, before the Thanksgiving break on Blackboard. You have to choose one among the following types of CMBS securities: • Sequential Pay with three tranches • Sequential Pay with three tranches with a Z-bond • Floater / Inverse Floater • PAC + Support Tranche • TAC + Support Tranche After that, build an excel model that will compute cash flows towards each tranche. The model will feature the following: a) Customizable inputs for the following: • Initial principal in each tranche (summing to total principal on the underlying mortgages) • Maturity of the underlying loans in months • Interest rate of the underlying loans • Interest rate to investors in each tranche • Servicing fee paid by the investors (same for each tranche) • Prepayment assumption (PSA or constant CPR) • Current market rate b) User will input all the criteria in a) and be able to see the following update automatically: • Amortization table for the underlying pool (initial principle, scheduled payments, prepayments, scheduled principal, interest) • Servicing fee of each tranche • Cash flow of each tranche • Investor valuation for the security c) An additional tab should include the following, fully annotated graphs (title + labeled axis) • Initial principal of each tranche over time • Total payments to each tranche The grades will be awarded based on the following criteria: · Accuracy: the spreadsheet should compute accurate cash flows for any inputs of the parameters above. The spreadsheets must necessarily be dynamic. · User-Friendliness: it should be obvious where one should enter the parameters above and where to look for cash flows towards each tranche. Clearly state what type of security you chose. Note: This is an individual project and intended for you to learn how to build a spreadsheet yourself from scratch. The use of a pre-made template or collaboration of any kind is strictly prohibited. It would be treated as plagiarism and duly measures would be taken against that. Excel Functions That Might be Useful: I. ADDITION, SUBTRACTION, MULTIPLICATION, AND DIVISION LOGIC II. SUM() AND AVERAGE() FUNCTIONS III. TRUE AND FALSE LOGIC IV. IF() FUNCTION V. AND() & OR() FUNCTIONS VI. MAX() AND MIN() FUNCTIONS VII. COUNTIF() AND COUNTA() FUNCTIONS VIII. IRR() AND NPV() FUNCTIONS Additional Excel Features: 1. DATA VALIDATION: Data Validation restricts the type of data or the values that users enter into a cell. So for instance, with Data Validation you can limit inputs in a given cell to a specific type of value (e.g. whole numbers only). You can also restrict inputs to only predetermined values (e.g. a drop-down menu with a specific list). 2. CONDITIONAL FORMATTING: Conditional Formatting allows you to create a custom look for certain cells (or the entire model) based on user inputs. 3. DATA TABLE: The Data table feature is a feature in Excel t ...

1. Final Project (Real Estate 3400)
1. Individual Project:
The final project will be due on November 22th, before the
Thanksgiving break on Blackboard.
You have to choose one among the following types of CMBS
securities:
• Sequential Pay with three tranches
• Sequential Pay with three tranches with a Z-bond
• Floater / Inverse Floater
• PAC + Support Tranche
• TAC + Support Tranche
After that, build an excel model that will compute cash flows
towards each tranche. The model will feature the following:
a) Customizable inputs for the following:
• Initial principal in each tranche (summing to total principal on
the underlying mortgages)
• Maturity of the underlying loans in months
• Interest rate of the underlying loans
• Interest rate to investors in each tranche
• Servicing fee paid by the investors (same for each tranche)
• Prepayment assumption (PSA or constant CPR)
• Current market rate
b) User will input all the criteria in a) and be able to see the
following update automatically:
• Amortization table for the underlying pool (initial principle,
scheduled payments, prepayments, scheduled principal, interest)
• Servicing fee of each tranche
• Cash flow of each tranche

2. • Investor valuation for the security
c) An additional tab should include the following, fully
annotated graphs (title + labeled axis)
• Initial principal of each tranche over time
• Total payments to each tranche
The grades will be awarded based on the following criteria:
· Accuracy: the spreadsheet should compute accurate cash flows
for any inputs of the parameters above. The spreadsheets must
necessarily be dynamic.
· User-Friendliness: it should be obvious where one should
enter the parameters above and where to look for cash flows
towards each tranche. Clearly state what type of security you
chose.
Note: This is an individual project and intended for you to learn
how to build a spreadsheet yourself from scratch. The use of a
pre-made template or collaboration of any kind is strictly
prohibited. It would be treated as plagiarism and duly measures
would be taken against that.
Excel Functions That Might be Useful:
I. ADDITION, SUBTRACTION, MULTIPLICATION, AND
DIVISION LOGIC
II. SUM() AND AVERAGE() FUNCTIONS
III. TRUE AND FALSE LOGIC
IV. IF() FUNCTION

3. V. AND() & OR() FUNCTIONS
VI. MAX() AND MIN() FUNCTIONS
VII. COUNTIF() AND COUNTA() FUNCTIONS
VIII. IRR() AND NPV() FUNCTIONS
Additional Excel Features:
1. DATA VALIDATION: Data Validation restricts the type of
data or the values that users enter into a cell. So for instance,
with Data Validation you can limit inputs in a given cell to a
specific type of value (e.g. whole numbers only). You can also
restrict inputs to only predetermined values (e.g. a drop-down
menu with a specific list).
2. CONDITIONAL FORMATTING: Conditional Formatting
allows you to create a custom look for certain cells (or the
entire model) based on user inputs.
3. DATA TABLE: The Data table feature is a feature in Excel
that calculates multiple results (i.e. outputs) instantly. This
feature is especially useful for scenario analysis in real estate,
as well as displaying outputs in a dynamic way.
4. CHARTING TOOL: Charting tools allows you to visually
present your outputs in a compelling (and dynamic) way.
Supply Chain Sustainability: Why It Is Important & Best
Practices
David Luther | Digital Content Strategist
In recent years, customers, employees, investors and
governments have put increasing pressure on companies to

4. demonstrate greater environmental stewardship and social
responsibility. This comes at a time when the business case for
sustainable operations grows stronger every year.
For many businesses, supply chains have come into focus
because they use a lot of resources and money and are
frequently a source of unnecessary waste. Thus, supply chain
sustainability has emerged as a key corporate goal. Companies
have started to measure the environmental and societal impact
of their goods and services, from the beginning to the end of
their life cycles.What Is Supply Chain Sustainability?
Supply chain sustainability refers to companies’ efforts to
consider the environmental and human impact of their products’
journey through the supply chain, from raw materials sourcing
to production, storage, delivery and every transportation link in
between. The goal is to minimize environmental harm from
factors like energy usage, water consumption and waste
production while having a positive impact on the people and
communities in and around their operations. These concerns ar e
in addition to traditional corporate supply chain concerns
around revenue and profit.
To set the stage for a more comprehensive understanding of
supply chain sustainability, here are some foundational
definitions and answers to common questions.
What Is a Supply Chain?
A supply chain is a coordinated network of all the companies,
facilities and activities involved in developing, manufacturing
and delivering a business’s products.
What Is Supply Chain Management?
Supply chain management is the practice of coordinating
sourcing, production, inventory management and transportation
among all the participants in a supply chain to maximize
efficiency and customer satisfaction. Many businesses realize
major time and cost savings by evaluating and improving supply
chain management.

5. What Is Sustainable Supply Chain Management?
While conventional supply chain management focuses on the
speed, cost and reliability of operations, sustainable supply
chain management adds the goals of upholding environmental
and societal values. This means addressing global issues such as
climate change, water security, deforestation, human rights, fair
labor practices and corruption.
How Can a Supply Chain Be Sustainable?
Companies around the world have taken steps to lower their
carbon emissions, cut back on waste and improve labor
conditions. By tracking sustainability metrics in supply chain
management (SCM) systems, they monitor multifaceted
programs that, for example, prioritize renewable energy, recycle
products and materials or encourage greater social
responsibility among suppliers. Subaru’s Indiana car-making
plant—the U.S.’s first zero-waste factory—is a compelling
example of a sustainable supply chain, as documented by
Scientific American.
Additionally, companies can use intelligence and pre-defined
rules to ensure that products aren’t being shipped
unnecessarily—for example, making sure products are sent from
the closest distribution center as opposed to one on the other
side of the country.
Why Is Sustainability Important in the Supply Chain?
Research has shown that, for most companies, the supply chain
is responsible for the bulk of their environmental impact. By
their very nature, supply chains often involve energy-intensive
production and transportation as goods are made and moved
around the globe. Therefore, organizations can often make the
biggest difference by making changes to their supply chain
rather than other business operations.
The complexity of myriad supplier relationships and border
crossings also makes supply chain sustainability challenging.

6. This complexity can hinder visibility into important operational
considerations such as labor conditions at a supplier’s factory
that is thousands of miles away.Supply Chain Sustainability
Statistics
As businesses have put more focus on supply chain
sustainability, many have studied trends in this area across
industries, countries and areas of impact. Here are several
notable statistics:
· Demand: Nearly half of U.S. consumers say they would
change purchasing habits to reduce their impact on the
environment, according to Nielsen.
· Environmental impact: The supply chain accounts for more
than 90% of most consumer goods companies’ environmental
impact, according to McKinsey & Company.
· Societal risk: The U.S. Department of Labor listed 148 types
of goods from 76 countries produced by child labor or forced
labor in 2018, when it released the Comply Chain app to help
American businesses eliminate child labor from their supply
chains.
· Data systems: A 2019 survey by the Carbon Disclosure Project
(CDP) found that 65% of its corporate members used
environmental metrics to inform supplier management and hold
their business partners accountable to supply chain
sustainability goals.
· Progress: CDP has reported promising progress in cutting
greenhouse gases: In its 2019 survey, 29% of 7,000 suppliers to
some of the world’s largest corporations reported a decrease in
emissions.Supply Chain Sustainability Examples
Outdoor apparel and gear retailers provide particularly helpful
models for supply chain sustainability. Some brands make
clothes from recycled plastic bottles or collect used garments,
repair them and resell them as “upcycled” goods. Patagonia
operates an award-winning green distribution center and built a
“zero waste” program by reducing the weight of packaging and
using sustainable packaging materials. As an industry
collaborative, the Sustainable Apparel Coalition’s aim is “an

7. apparel industry that produces no unnecessary environmental
harm and has a positive impact on the people and communities
associated with its activities.”
Examples of sustainability cut across industries, per stories
from publisher SustainCase. For example, one road builder that
previously bought asphalt based on price alone cut shipping
distance and related carbon emissions by 40% and achieved a
lower total landed cost by buying local supplies. A fast food
company redesigned its packaging to avoid repacking in the
supply chain, eliminating literal tons of waste. An electronics
company requires suppliers to sign a “code of conduct
compliance declaration” that highlights integrity and
governance.Three Tiers of Sustainability
Lack of visibility into the supply network is one of the biggest
challenges to supply chain sustainability, particularly because
businesses usually work with suppliers in multiple tiers.Many
buyers have direct relationships with their Tier 1 suppliers and
contract manufacturers. Those Tier 1 companies’ suppliers and
subcontractors, in turn, are Tier 2 suppliers. And those
subcontractors may be working with mines, farms and other
providers of raw materials that fall into Tier 3.
Companies recently surveyed by Ernst & Young expressed a
lack of transparency into the operations of any partners beyond
Tier 1 . Some buyers lean on their Tier 1 suppliers to cascade
sustainable practices onto the Tier 2 companies, the Tier 2
suppliers to monitor the practices of Tier 3, and so
forth.Benefits of Supply Chain Sustainability
Supply chain sustainability benefits not only companies’ own
interests and those of their stakeholders but also society and the
planet at large. Companies have realized that climate change,
for example, can put their business continuity at risk with
extreme weather disruptions and growing resource scarcities.
Here are five frequently cited business activities that benefit
from sustainability:
Supply chain operations: Recent examples show that energy
costs decrease, for example, as companies set emission targets

8. with suppliers and help them identify potential areas for
improvement.
Branding: Consumers are more concerned than ever about where
products come from and how they’re produced. Researchers
at MIT’s Sloan School of Management found that consumers
may pay 2-10% more for products that provide supply chain
transparency.
Investor relations: Institutional investors are keenly aware of
the reputational risk of unsustainable supply chain operations.
In recent years, the media has reported many irresponsible
supply chain practices, and in some cases, it’s hurt a given
company’s stock prices. These accounts have revealed
businesses sourcing electronics from overseas, maintaining
hazardous working conditions, using suppliers that routinely
polluted local rivers, and procuring defective components or
toxic materials. It’s also worth noting that nearly half of
investors in a recent Gallup poll expressed interest in
sustainable investment funds.
Corporate culture: Millennials, in particular, seek greater
purpose in their work, according to demographers. Successfully
hiring and retaining employees often depends on a company’s
corporate culture and values, and sustainability plays a key role
in that.
Compliance: Governments around the world are mandating
greater supply chain sustainability, in part to meet the United
Nations’ 2030 deadline for achieving Sustainable Development
Goals, like clean water for all. Government regulations cover
many areas, including the traceability of pharmaceuticals,
disposal of electronics and avoidance of conflict
minerals.Challenges of Supply Chain Sustainability
Cost is the primary impediment to sustainable supply chains,
with smaller companies finding it particularly difficult to afford
the upfront costs of making a supply chain more sustainable.
However, an investment in something like compact packaging,
for example, can lead to a reduction in the size and number of
shipments, a lower environmental footprint and cost savings

9. over time.
Other companies find that there simply aren’t sustainable
options for components, or that they’ve inherited supply chains
from acquisitions that are difficult to shift towards sustainable
practices because of complexity or organizational structure.
These challenges can be overcome, but 20% of respondents in a
survey reported that customers simply weren’t interested. This
makes it difficult for some companies to justify the added
expense or effort.Supply Chain Sustainability Best Practices
For many companies, sustainability is no longer just something
to monitor, but integral to the foundation of their supply chain.
CDP reports its members integrate environmental data into
procurement tools and processes, using environmental metrics
alongside cost and quality stats as they evaluate suppliers.
Other CDP members include specific environmental
performance language in contracts and tender documents. Some
businesses provide sustainability training to their own
procurement managers and suppliers to help the cause.Four
Steps to a More Sustainable Supply Chain
Forrester Research has developed a framework for integrating
sustainability into your supply chain, with a focus on four
areas:
1. Procurement: Most companies start sustainability programs
by looking at energy and water procurement, and by procuring
sustainable materials to use in their products.
2. Operations: Look for operational processes or steps across
the supply chain that could be more efficient and reduce
resource usage.
3. Retirement: Avoid excess waste and obsolete items by
designing products for upcycling and reuse.
4. Data and communication: Measure the effectiveness of
initiatives in the first three areas, and strengthen any related
efforts, by communicating them to customers, supply chain
partners and other stakeholders.
Supply Chain Sustainability Trends
Innovation has and will drive supply chain sustainability in the

10. years to come. Two trends that will keep momentum going in
this area are the circular economy and data-driven supply
chains.
The goal of a circular economy is to design pollution and waste
out of products and systems like supply chains. In this system,
products are built to have a light environmental footprint, last
longer and be easily disassembled and remade or transformed
for reuse.
In data-driven supply chains, companies leverage cloud-based
supply chain execution systems that provide detailed analytics
and may even pull data from equipment sensors and other
Internet of Things (IoT) devices. This gives businesses deeper
visibility into their operations, and they can then find,
implement and monitor strategies to become more sustainable.
Supply Chain Sustainability: Why It
Is Important & Best Practices
David Luther
|
Digital Content Strategist
In recent years, customers, employees, investors and
governments have put
increasing pressure on companies to demonstrate greater
environmental
stewardship and social responsibility. This comes at a time
when the business
case for sustainable operations gr
ows stronger every year.
For many businesses, supply chains have come into focus

11. because they use
a lot of resources and money and are frequently a source of
unnecessary
waste. Thus, supply chain sustainability has emerged as a key
corporate goal.
Companie
s have started to measure the environmental and societal impact
of
their goods and services, from the beginning to the end of their
life cycles.
What Is Supply Chain Sustainability?
Supply chain sustainability refers to companies’ efforts to
consider the
e
nvironmental and human impact of their products’ journey
through the supply
chain, from raw materials sourcing to production, storage,
delivery and every
transportation link in between. The goal is to minimize
environmental harm
from factors like energy us
age, water consumption and waste production
while having a positive impact on the people and communities
in and around
their operations. These concerns are in addition to traditional
corporate supply
chain concerns around revenue and profit.
To set the sta
ge for a more comprehensive understanding of supply chain
sustainability, here are some foundational definitions and
answers to common
questions.

12. Supply Chain Sustainability: Why It
Is Important & Best Practices
David Luther | Digital Content Strategist
In recent years, customers, employees, investors and
governments have put
increasing pressure on companies to demonstrate greater
environmental
stewardship and social responsibility. This comes at a time
when the business
case for sustainable operations grows stronger every year.
For many businesses, supply chains have come into focus
because they use
a lot of resources and money and are frequently a source of
unnecessary
waste. Thus, supply chain sustainability has emerged as a key
corporate goal.
Companies have started to measure the environmental and
societal impact of
their goods and services, from the beginning to the end of thei r
life cycles.
What Is Supply Chain Sustainability?
Supply chain sustainability refers to companies’ efforts to
consider the
environmental and human impact of their products’ journey
through the supply
chain, from raw materials sourcing to production, storage,
delivery and every
transportation link in between. The goal is to minimize
environmental harm
from factors like energy usage, water consumption and waste
production
while having a positive impact on the people and communities
in and around
their operations. These concerns are in addition to traditional
corporate supply

13. chain concerns around revenue and profit.
To set the stage for a more comprehensive understanding of
supply chain
sustainability, here are some foundational definitions and
answers to common
questions.