Construct the cash flow proforma statement for the following project by filling out the white cells of the following table.

?A 2-year levered equity investment between t=0 and t=2.

?The first NOI is 10 at t=1, and NOI grows at 5%/yr until t=3.

?The cap rate is 5% (going-in) at t=0 and increases by 0.5%/yr to 6% (going-out) at t=2.

?Capital Expenditures are 10% of NOI.

?The investment is levered with a two-year interest-only loan at a 5% interest rate with the face value of 80 (i.e., the initial loan amount is 80).

Linkage T = 0 T= 1 T = 2 T = 3 Cap rate r (increases by 0.5%) 5.00% 5.50% 6.00% NOI A (grows @ 5%) 10.00 10.50 11.03 [-] Capital expenditure | B = 10% x A 1.00 1.05 1.10 [-] Cost to purchase C = 10 / 5% 200.00 [+] Proceeds from sale | D = 11.03 / 6% 183.75 [+] Loan borrowed E 80.00 [-] Loan repaid F = E 80.00 [-] Interest G = E x 5% 4.00 4.00 Net Cash flows A - B - C+D+E - F- G -120.00 5.00 109.20