Use the below information to complete the operations and reversion proformas (all the way down to after tax), then answer the following 5 questions

Purchase price	$600,000
LTV	70%
Term & Am	15	years
Interest rate	4%
Closing costs	$8,400
Holding period	5	years
Annual income taxes	$5,000	fixed each year
Marginal tax rate (ordinary inc tax)	30%
Taxes due on sale	$100,000
Discount rate (before tax)	15%
Selling expenses	3%
Exit cap rate	5%
Operations		YEAR 1	YEAR 2	YEAR 3	YEAR 4	YEAR 5	YEAR 6
NOI		$ 32,700	$ 37,500	$ 35,754	$ 36,462	$ 40,800	$ 42,954
CAPEX		$ (5,000)	$ (7,000)	$ (8,000)	$ (4,000)	$ (9,000)
PBTCF		$ 27,700	$ 30,500	$ 27,754	$ 32,462	$ 31,800

1. What is the after-tax NPV for this investment?

$92,486

$35,771

None of these are correct

-$18,166

$23,905

2. What is the before tax IRR for this investment?

-17.23 %

16.91 %

None of these are correct

24.32 %

20.05%

3. What is the equity multiple for this investment? Use before tax cash flows.

2.47x

None of these are correct

2.72x

2.38x

2.70x

2.27x

4. Using the stated discount rate as the market discount rate, compute the market value of the property. Based on that calculation and the actual purchase price, by how much did this investor over pay for the property?

Group of answer choices

$64,268

$92,486

$30,000

None of these are correct

$107,985

5. What is the DCR in year 4?

0.98

1.09

1.26

0.75

None of these are correct