14) ACME Office Building has the following data: purchase price of $5 million, debt at $4 million, interest only at 5%, cap rate of 6% annual inflation or growth rate of 3% and the due date of the debt is seven years. What is the cash-on-cash return in year 2?

A) 10.0%. B) 10.9% C) 6.0%. D) 5.2%.

Please include all steps. I will make sure to upvote if you do!