You invest $$24,000,000$ of cash equity in a project that will cost $$40,000,000$ to acquire and another $$80,000,000$ to build. You

intend on holding the property and selling it at the end of $10$ years. You obtain debt of $$96,000,000$ at $4\mathrm{.}00\%$ fixed on a $30-$year

amortization schedule. NOI is $$7,400,000$ in Year $1$ and is expected to increase by $4\mathrm{.}00\%$ per year thereafter. Your Discount

Rate is $8\mathrm{.}00\%,$ your Terminal Cap Rate is $10\mathrm{.}00\%,$ and your Cost of Sale is $3\mathrm{.}00\%.$

$10.$ What is the Levered NPV and IRR?

$11.$ If the acquisition cost increased to $$52,000,000$ and your lender was only willing to provide debt at a $70\%$ LTV$,$ what is

your new NPV and IRR? Do you invest? Why or why not?