Using the FO XLS Waterfall model, customize the model to conform to the following:

$1MM equity investment that is funded as follows:

95% LP

5% GP

8% preferred return to both GP and LP

Cash Flows

Year 1 - $110,000

Tear 2 - $320,000

Year 3 - $260,000

The reversion at the end of year 3 is $1,650,000

Splits after return of accrued preferred return, preferred return and original equity invested:

80% LP

20% GP

Paste the waterfall below. Ultimately you are solving for the equity leveraged IRR for both

the GP and LP

11.) In the example above calculate the before debt IRR for both cash flows and sale.