$*****************************************$ PLEASE SHOW WORK: SPECIFICALLY $>>>$ LESS DEBT SERVICE?????????????$********$An investor is planning to purchase a new apartment property for $$1\mathrm{.}5$ million.

He can obtain an $80\%$ loan for $30$ years at $10\%.$ NOI is expected to be $$500,000$ in the first year and grow at a rate of $2\%$ for the next three years along with the underlying value of the building. The building and improvements represent $80\%$ of value and are depreciated over a $27\mathrm{.}5$ useful life for an annual depreciation allowance of $$43,636.$ The project is expected to sell after three years, and the investors are subject to a $30\%$ tax rate. Create pro forma cash flow statements to solve the following problems.

a$.$ Find the BTIRR and ATIRR.

b$.$ Find the unlevered BTIRR and ATIRR

c$.$ Computer the Break$-$even interest rate $($BEIR$).$

d$.$ Using the pro forma cash flow statement for the leveraged property, find the marginal rate of return from years $2$ to $3.$