Use the following property data:

Use the following property data:

Purchase price $1,850,000

Cash flow from operations:

Year 1 2 3 4 5

NOI $175,000 $200,000 $225,000 $250,000 $275.000

Debt Service $140,000 $140,000 $140,000 $140,000 $140,000

Cash Flow at sale:

Sale Price: $2,137,500

Cost of sale: $64,125

Mortgage balance: $1,603,125

Going in Cap Rate 8%

Required return, UNLEVERED CF's (APR) 10%

Required return, LEVERED CF's (APR) 15%

Question 1

Using the Loan to Value ratio, above, calculate the initial equity investment in this property. Enter a positive number.

Question 2

Find the LEVERED net sale proceeds from the sale of the property:

Question 3

Calculate the LEVERED BTCF to equity in year 2:

Question 4

Calculate the LEVERED BTCF to equity in year 4. Don't overthink this...

Question 5

Calculate the TOTAL LEVERED CF in Year 5

Question 6

Compute the NPV of the property based on LEVERED cash flows. Round to the nearest dollar.

Question 7

Calculate the IRR of the property, based on LEVERED CF's. Express your answer in percent. Round to TWO decimal places.