A real estate investor is considering the purchase of an office building using an equity participation loan. The following information is known: Project Cost: Total: $875,000 Building: 85.00% of total, depreciated over 39 years Project financing: Loan amount: 80.00% LTV Interest rate: 9.00% Amortization: 20 years with annual payments Participation terms: Share of NOI: 40.00% of NOI above $85,000 Share of price appreciation: 30.00% NOI in Year 1: $83,000 Growth rates: NOI: 3.00% Resale price: 4.00% Investor's marginal tax rate: 28.00% Capital gains tax rate: 20.00% Depreciation recovery tax rate: 25.00% Holding period: 5 years a. What are the owner's BTIRR and ATIRR? b. What is the lender's expected return?

Spreadsheet format would be very helpful. Thank you!