Using the Wildcat Case Study, $1.$ Complete the waterfall shown in Exhibit $10$ using the benchmark assumption in the case. Calculate the expected return to Wildcat and their partners. Assume a three year holding period. Do not include Wildcat management fee in returns calculation. $25$ points. $2.$ For each of the following scenarios please recalculate spreadsheets $9$ and $10.$ Keep the remaining benchmark assumptions constant. Each scenario is to be calculated separately. Assume that outside investors will only become partners if they believe that they will receive a $20\%$ IRR and Wildcat will only pursue the deal if the believe they will earn a $50\%$ IRR. Discuss whether or not each party would proceed. Scenario $1.$ The holding period is $5$ years. North Shore Bank does not renew its lease at the end of Year $3$ and its space remains vacant in Year $4.$ A new tenant begins lease in Year $5$ at $$18$ psf reimbursing $$5$ psf in expenses. There are no rent increases in the new lease. TI is $$4$ psf paid in Year $5.$ A leasing broker will charge only $2\%$ of the first year's rent as commission. $25$ points Scenario $2.$ Assume $3$ year holding period. The life insurance company $($lender$)$ cuts back proceeds to $60\%$ LTV and updates the interest rate to $7\%.$ Assume $3$ year holding period. $15$ points. Scenario $3.$ Assume $3$ year holding period. Outside investors now require a $12\%$ pref return. This means that at reversion, the outside investors will receive additional cash until they achieve a $12\%$ IRR over the life of the investment. The remaining proceeds will go to the promote. $15$ points. $3.$ Evaluate the assumptions the analyst made. Would you have made the same assumptions? What do you think is the fair market price for the property? Explain why for each assumption and for the value. $20$ points.