(3) Fill in the sheet titled NPV-IRR.Ann will buy the property in 2014, she will collect NOI for 5 years 2015-2019, and she will sell it in 2019.Anns loan has a 5/4/3/2/1 prepayment penalty structure, so if she prepays in the first year, she will paya penalty equal to 5% of the balance, in the second year she will pay a penalty equal to 4% of thebalance etc.Ann forecasts NOI will grow at 2% per year, compounded annually.Ann forecasts she can sell the property in 2019 at a 6.25% cap rate.Recall: 2019= 2020 2019(3.a)How much will Ann sell the property for in 2019?(3.b) How much of a capital gain will Ann earn? (Hint: capital gain = sale pricepurchase price)(3.c) What is Anns IRR for this investment?(3.d) If Anns discount rateis 25%,what is her NPV?Should she make this investment?(3.e) Plot Anns NPV for discount rates0%-100%.Copy and paste the chart below

Investment Analysis Year 2014 2015 2016 2017 2018 2019 2020 Inputs Purchase Price Purchase Costs Loan amount Loan Closing Costs Prepayment Penalty Debt Service NOI 2015 Going in cap rate 2014 NOI growth rate Exit cap rate 2019 Selling Costs $11,822, 261.54 1.50% $0.00 1.25% 5%/4%/3%/2%/1%/0% $0.00 $768,447.00 6.50% 2.00% 6.25% 7.00% Purchase Price Purchase Costs Loan Amount Loan Closing Costs Net Operating Income (NOI) Debt Service Payment Capital Gain $0.00 Sale Price Selling Costs Loan Balance Repaid Loan Prepayment Penalty Net Cash Flow Sum of Net Cash flow $0.00 IRR $0.00 $0.00 $0.00 $0.00 Discount Rate NPV 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00% 55.00% 60.00% 65.00% 70.00% 75.00% 80.00% 85.00% 90.00% 95.00% 100.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Investment Analysis Year 2014 2015 2016 2017 2018 2019 2020 Inputs Purchase Price Purchase Costs Loan amount Loan Closing Costs Prepayment Penalty Debt Service NOI 2015 Going in cap rate 2014 NOI growth rate Exit cap rate 2019 Selling Costs $11,822, 261.54 1.50% $0.00 1.25% 5%/4%/3%/2%/1%/0% $0.00 $768,447.00 6.50% 2.00% 6.25% 7.00% Purchase Price Purchase Costs Loan Amount Loan Closing Costs Net Operating Income (NOI) Debt Service Payment Capital Gain $0.00 Sale Price Selling Costs Loan Balance Repaid Loan Prepayment Penalty Net Cash Flow Sum of Net Cash flow $0.00 IRR $0.00 $0.00 $0.00 $0.00 Discount Rate NPV 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00% 55.00% 60.00% 65.00% 70.00% 75.00% 80.00% 85.00% 90.00% 95.00% 100.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00