1. {1 point} You pay $1000 for a property with 9% cap rate, keep it for 5 years, and sell at the end of year 5 at the same cap rate. The selling costs are 5% of the price. What is your IRR? Enter your answer in percent, but without percent sign.

2. {1 point} You are doing the same as above but instead of paying cash, you take a 70% LTV IO loan at 5% annual rate. What is your IRR?

3. {1 point} In addition to the loan above you take a mezzanine IO loan of $200 at 8% annual rate. What is your IRR?

The neighborhood is declining, so your selling cap rate is 11% in questions 10-13. You have limited liability: you can walk away anytime. If you walk away in year t, you also lose the net income in that year so that your cash flow for year t is zero.

4. {1 point} You pay cash as in Question 1 above. What is your IRR?

5. {1 point} You take the loan as in Question 2 above. What is your IRR?

6. {1 point} You take an additional mezzanine loan as in Question 3 above. What is your IRR?