Use the below information to complete the operations and reversion proformas, then answer the following 5 questions Purchase price $400,000 LTV 70% Term & Am 20 years Interest rate 4.00% Closing costs $6,000 Holding period 4 years Marginal tax rate 30% (aka ordinary inc tax) Selling expenses (broker) $15,000 Taxes due on sale $100,000 Exit cap rate 10% Discount rate (before tax) 15% Operations YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 NOI $ 32,000 $ 40,000 $ 45,000 $ 50,000 $ 60,000 CAPEX $ (5,000) $ (7,000) $ (8,000) $ 0 PBTCF $ 27,000 $ 33,000 $ 37,000 $ 50,000 Income taxes (operations) $ (5,000) $ (5,000) $ (5,000) $ (5,000)

What is the before tax IRR for this investment?

Group of answer choices

29.05 %

27.17 %

None of these are correct

19.23 %

24.32 %