Real Estate Compared to Bonds $-$ Simplified Examples

You have a $$1000$ to invest with a $10-$year horizon and are comparing investing in a $10-$year bond $($that has equal risk to the real estate considerations$),$ and unlevered and levered real estate. The bond pays $8\%$ annual coupon. Your buildings provide an NOI of $$80$ and you expect to buy and sell your buildings for $$1000,$ with no acquisition or selling expense. You are in a $43\mathrm{.}4\%$ marginal tax bracket, with a $28\mathrm{.}8\%$ depreciation recapture rate and a $23\mathrm{.}8\%$ capital gains tax rate. You can take a $30-$year straight line depreciation on the buildings $($valued at $$800$ each$)$ and not depreciate the $$200$ land value. You can get bullet loans for $75\%$ LTV at $5\%$ for $10$ years. No PALL's are allowed. Complete the following table of cash flows that will provide the IRR noted. Summarize you computations in appended table. Answer the noted questions after completing you computations.

$\backslash$table$[[,$ond,,Unlevered B$,,4$ Levered,Bldgs$],[,$eTax,Post Tax,PreTax,Post Tax,PreTax,Post Tax$],[0,-1000,-1000,-1000,-1000,-1000,],[1,80,45\mathrm{.}28,80,,,],[2,80,45\mathrm{.}28,80,1,,],[3,80,45\mathrm{.}28,80,,,],[4,80,45\mathrm{.}28,80,,,],[5,80,45\mathrm{.}28,80,,,],[6,80,45\mathrm{.}28,80,,,],[7,80,45\mathrm{.}28,80,,,],[8,80,45\mathrm{.}28,80,,,],[9,80,45\mathrm{.}28,80,0,,],[10,1080,1045\mathrm{.}28,1080,,,],[$IRR$,8\mathrm{.}0\%,4\mathrm{.}5\%,8\mathrm{.}0\%,5\mathrm{.}1\%,17\%,12\mathrm{.}5\%$