A closed$-$end, commingled opportunity fund is being created with an expected three$-$year life. It expects to acquire properties that it expects to turnaround and sell at the end of three years for a gain. It also plans a minimum target return of $10$ percent to investors, which will be based on cash distributions from operations and from the sale of properties at the end of the life of the fund. The opportunity fund manager expects to receive a promote equal to $25$ percent of cash flows remaining after sale of the assets and after equity investors receive their minimum $10$ percent target return. Cash flows are expected as follows:

$\backslash$table$[[,\backslash$table$[[$Equity$],[$Investment$]],\backslash$table$[[$Cash Distributions from$],[$to Equity Investors $($After$],[$Management Fees$)]],\backslash$table$[[$Expected Sale$],[$Proceeds$]]],[$Year $0,$$$4,000,000,,],[$Year $1,,$$$150,000,],[$Year $2,150,000,$$$5,000,000,]]$

Required:

a$.$ What must be the cash flows to equity investors at the end of year $3$ in order to achieve their total target $10$ percent return on equity investment?

b$.$ How much of the proceeds from property sales must the fund manager receive in order to earn its $25$ percent promote?

c$.$ After the equity investors earn their $10$ per$$ent target return $($IRR$)$ and the fund manager earns the $25$ percent promote, how much will be distributed to equity investors?

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Required A

What must be the cash flows to equity investors at the end of year $3$ in order to achieve their total target $10$ percent return on equity investment? $($Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.$)$

Cash flows to equity investors