Please type out the answer if you can. Please answer all parts.

2) Assume that you were given an opportunity to purchase a real estate project using an equity participation loan. The NOI for each year of the holding period are shown below: Year 1 124.787 Year 2 132,225 Year 3 139.954 Year 4 148,468 NOI Annual payments are being used to make the problem easier! Page 2 of 3 Additional information: 1) Purchase price = $1,900,000 2) Estimated value of land = $500,000 3) Anticipated mortgage terms: a) Loan to value ratio = .80 b) Interest rate = 5.25% c) Years to maturity = 25 d) Points charged = 3 e) Prepayment penalty = 2% of outstanding balance f) Level payment, fully amortized g) Fixed interest rate, monthly payments 4) Participation terms: a) Share of NOI = 15.5% over $130,000 b) Share of Appreciation = 18% 5) Future sales price = $2,350,000 6) Estimated selling expenses as proportion of future sales price = 5% 7) Client's minimum required before-tax rate of return on equity = 12% Calculate: The before-tax cash flows and the before-tax equity reversion (you do not need to calculate the after-tax cash flows or reversion), The before-tax net present value to the investor. a. b