8. The equity cash flows of a development project are supposed to be divided between two partners in a JV agreement. The investor in this agreement puts 100% of the necessary cash for the project while the developer puts 0%. The agreement stipulates that the investor will get 8% cumulative preferred return. After the preferred return is paid, the investor will receive back her equity balance. After the equity balance is paid, any remaining cash ows will be divided between the developer and the investor according to the following waterfall structure Investor IRR above 3% and below 15% Percentage of cash ow to developer 30% Percentage of cash ow to investor ?0% Investor IRR above 15% and below 25% Percentage of cash ow to developer 40% Percentage of cash ow to investor 00% Investor IRR above 25% Percentage of cash ow to developer 50% Percentage of cash ow to investor 50% Assuming that the equity entity cash ows in a development project are below. What are the investor's and the developer's cash ows and their respective IRRs'? Equityr Entity Cash Flows Year 0 1 2 3 $ {2,000,000} $ - $ 400.000 $ 2,500,000