PLEASE SHOW WORK IN EXCEL* A bank owned fixer-upper property is selling for $500,000. You are considering purchasing the property from the bank, and have run the following estimates: Lawyer and broker fees to purchase: $22,000 Monthly repair and maintenance for the first year: $5000 Monthly repair and maintenance after the first year: $700 The bank wants to get rid of the property soon, so they are offering a seller financed 90% LTV interest only loan at a 5.5% rate, with monthly payments, and a 5 year term. Your analysis suggests that a year from now, you could sell the repaired property for $650,000. The sale will cost you $7000 in brokerage fees and commissions. If you want to make at least a22% annual IRR (aka yield) on your initial invested capital, then how much would you be willing to pay for the property, assuming you would sell the repaired property one year after purchase? Assume there are no taxes or tax rebates, so you can ignore tax effects in your analysis. Hint: set up the cash flows, then use solver ***PLEASE SHOW WORK IN EXCEL**

Hint: set up the cash flows, then use solver