23. An investor bought an income producing property (an apartment) for $500,000 and intends to hold it for three years. The loan to value ratio is 80%. The investors also paid $5000 in points, and renovate the property for $20,000. The investors required rate of return is 8%. The expected aftertax cash flow from operations are as follows: Year 1 = $16,000 Year 2 = $14,000 Year 3 = $12,000 The cash flow from sale of the property in year 3 (after tax net reversion) = $268,183

23a. Assuming the investors required rate of return is 8% calculate the net present value from the investment (5points)

23b.Calculate the total investment value of the project (5 points)

23c. Calculate the profitability index of the project (4 points).