This is an example of a cash flow problem. The provided pictures include the solution to the problem, but I am unsure of how to acquire those answers. Can someone clarify and explain to me the formula to calculate gross potenial income, VCL, effective gross income, other income, total effective income, variable, fixed, total expenses, etc.

EXAMPLE ON GENERATING CASH FLOWS, EQUITY REVERSION AND NPV IRR ANALYSIS GIVEN Purchase Price Land Value 30 yr.fixed rate loan @8% Loan to Value ratio 1st yr. Potential Gross Income Average VCL 1 st yr. Other Income 1st yr. Operating Expenses Yearly NOl increase Yearly OE increase Ordinary income tax rate Tax on Recaptd. Deprectn. Tax on Capital Gain Required Rate of Return Selling costs Capitalization Rate $525,000 $74,000 $393.750 75% $108,000 4% $39,68o 5% 58 36% 25% 20% 12% 10% Assumptions: . No Half Month (depreciation) Convention used for 1st year 2. Overall CapRate available from comparable properties to determine the sales price is REQUIRED: A. Construct detailed cash flows for the years 1 to 4, showing the BTCF and ATCF for each year B. Based on the available CapRate from comparable properties and the projected NOI for the 5th year, calculate the BTER and ATER, if this property were to be sold at the end of 4th year C. Based on your initial equity, projected cash flows and equity reversion, perform a Net Present Value analysis and calculate the Internal rate of Retun for this property. Based on your NPV and IRR findings, is this a good investment