2 7'. 5 points Problem 7-4 An investor is considering the acquisition of a \"distressed property\" which is on Northlake Bank's REO list. The property is available for $200,400 and the investor estimates that he can borrow $160000 at 4.5 percent interest and that the property will require the following total expenditures during the next year: Inspection S 536 Title search 1,012 Renovation 13.806 Landscaping 812 Loan interest 7,206 Insurance 1.805 Property taxes 6.636 Selling expenses 8,000 Required: a. The investor is wondering what such a property must sell for after one year in order to earn a 20 percent return (IRE on equity. b. The lender is now concerned that itthe property does not sell. investor may have to carry the property for one additional year. He believes that he could rent it (starting in year 2] and realize a net cash ow before debt service of $1,320 per month. However, he would have to make an additional $7320 in interest payments on his loan during that time' and then sell. What would the price have to be at the end of year 2 in order to earn a 20 percent IRRon equity? 9 Answer Is not complete. Complete thls question by entering your answers In the tabs belew. Required A Required B The investor is wondering what such a property must sell for after one year in order to earn a 20 percent return (IRE) on equity. Note: Do not round Intermediate calculations. Round your final answer to nearest whole dollar amount. $ 243,333 a Complete this question. by entering your answers In the tabs below. Required A Required B The lender is now concerned that if the property does not sell, investor may have to oarrv the property for one additional year. He believes that he could rent it (starting in year 2) and realize a net cash ow before debt service of $1,320 per month. However, he would have to make an additional $7,320 in interest pavments on his loan during that time, and then sell. what would the price have to be at the end of year 2 in order to earn a 20 percent IRR on equity? Note: Do not round intermediate calculations. Round your final answer to nearest whole dollar amount. Show less;