Saul Berenson is considering purchasing a home for \($350\),000 and flipping it in four years. The expected rent is \($4\),000/month and expenses are \($1\),000/month. Mr. Berenson anticipates a rental increase of 3.0% per year, an expense increase of 3.0% per year, and a terminal cap rate in year 4 of 8%. Mr. Berenson expects to borrow 80% from a traditional lender using a conventional 25-year fixed rate mortgage at 3.5%, amortized annually.

If he anticipates a discount rate of 10% and a reinvestment rate of 2%, determine the following: (must develop an annual pro forma showing ALL work). Note: IRR and NPV should be calculated using the HP-12C and not by hand. MIRR is by hand.