Question: Please provide all steps and calculations, as if you answer the question manually INSTRUCTIONS: You are considering a real estate investment with the following parameters

Please provide all steps and calculations, as if you answer the

Please provide all steps and calculations, as if you answer the question manually

INSTRUCTIONS: You are considering a real estate investment with the following parameters and a five year holding period. Calculate the unlevered and levered NPV and IRR. Please make your calculations to the "right of the data" on this worksheet. Based solely on these calculations, would you proceed with the investment and why? Grade (out of 10): Purchase price 22 000 000 Anticipated NOI Year 1 Tear 2 Year 3 Year 4 Year 5 Year 6 (stabilized) 1 500 000 1 600 000 1 800 000 2 000 000 2 100 000 2 150 000 Financing LTV Payment frequency Mortgage rate Mortgage rate per month Term (years) Amortization (years) 70,0% Monthly 3,5% 0,2896% 5 25 Anticipated cap rate on sale Required Equity Return Required WACC 9,0% 15,0% 10,0%

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