Using Excel, build a cash flow model to calculate the NPV and IRR of the following real estate transaction Asset Type:

Retail Mall Land Cost: $ 200,000

Building Cost: $3,300,000

Total Cost: $3,500,000

Holding Period: 5 years

Gross Rent: year 1 $500,000

Vacancy Rate: 8%

Operating Expenses: year 1 15% of gross rent

Growth Rates: Gross Rent: 5%

Operating Expenses: 5%

Resale Price: 7%

Resale Expense Rate: 7%

Investors Tax Bracket: 35% on Ordinary Income

25% on Recapture of Depreciation

15% on Capital Gain

Cost of Equity: 15%

Cost of Debt: 11%

Amount of Debt: $2,000,000

Loan Amortization: 30 years