Question: You are preparing a five-year proforma for ACME Apartment Realty Fund I. The fund has the following data; $100M in total assets with 75%

You are preparing a five-year proforma for ACME Apartment Realty Fund I. The fund has the following data; $100M in total assets with 75% debt at 5% interest only, risk free rate of 3.5%, own- ership split of 75%/25%, preferred return of 8%, inflation rate of 3% and portfolio valued at a 7.0% cap rate. What is the total cash flow distributed to the investors in year one of the proforma?

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