A client comes to you asking for help in modeling his equity returns. He is considering purchasing a property for $10 million. NOI in Year 1 is $1,000,000, growing by 5.00% per year. Debt financing is available at a 70% LTV, 4.00% fixed rate, and a 30 -year amortization schedule. The property will be sold in Year 5 at a 10.75\% Exit Cap and with Selling Expenses of 3.00%. Equity Investors want a 25% compounded return (meaning, any unpaid interest and principal will earn interest at 25% every year). Create a model and show the Cash Flows and how they operate at the end of each year. - What is the Total Amount Due the Equity Investors at the end of Year 1 (Any unpaid Interest and any unpaid Principal)? - What is the Project's IRR? Part 2 Assume a 3.00\% annual increase in NOI. Assume a 5-Year holding period and a Sales Price at the end of Year 5 of $15,000,000. - What is the Project's IRR? - What is the Equity Multiple (using BTCF from the Project)? - The Equity Investors want to see the cash flows in order to prove that they achieved their 25% return. Show this