1) Why does equity group A recieve the lowest return?

2) Why does the IRR change with the mortgage?

purchase Price Term. Cap Rate RRR NPV Year 1 CAP Capital 10 1095* 120)" $297.262.82) 937% cash sm,s.4Yt2 528, 3850-47@ 548.299.57 591.93930 "S73S.30 Penod Tata' Debt 49200 m s,S49.12 528,7SY.39 385,017."' 561892.92 591.939.80 we 738.30 6758081.98 (929,487.36) (5329487.36) (929,481.36) ($329,487.36) ("29.48136) (5329. a87.36) ($329, 487.36) ($329, 487.36) 929,481. EquitvG'oupg 328, 1250 65625m Loan to Value Loan Amount Loan Rate Ann. PMT Leveraged IRR Debt Net (329, 48136) (329,487.36) (329,487.36) (329.487361 (329,487.36) (329,487.36) (32948136) (329487.36) (329,487.36) Z813 0348 Equtv GrouC 328, 125T 25. 82031.2S Requived Group Annual Return Gwup Annual Dividend Year O Year I Year 2 Year 3 Year Year 5 year 7 Year 8 Year 9 year 10 49,218.75 49.21875 49.2105 49.21875 .19 21875 09 218.75 49.21875 377,343.75 Actual Returns 328,125. 65 625m 65,625m 65 625m 6s,625.co 6s.62s.m 65,625m 65,625 .w 65, 625. co 5.11.26635 .17.66&89 5093233 $.218.01 82.03125 82031.25 82031.25 820312S u031.25 1.132051.12 3.937 som 5.50% ("29,487.36) (S2,483.55Z45) 16Z51Z64 165,77608 IOC61.76 199 27203 214812.21 Z3Z4.56 262,45244 277, 250 328,125m * 437.50 32 125. 397.03 21,937.21 35,530.56 eo.37s.94 t. 344380.94