ABC Fund has decided to enter into a joint venture with Newtown Development incorporated to develop and operate an office buliding that will requite an initial investment of $100 milion to cover all the development costs (hard and soft costs). There will be no debt thancing for the joint venture. Each party invests its capital at the beginning of the first year and cash flow from operations is projected as follows: It is expected that the property wall be sold at the end of year 5 for $150 milion. ABC Fund wat invest $45 million and Newrown Development incorporated will invest the remaining $55 million needed for the development costs. The $50 million development costs already include a developer fee to Newown Development incorporated and the cash flow projections for each yeat above are net of a property management foe being paid to Newtown Development Ancorporated. ABC Fund will receive a 5 percent operating retum that is noncumulative. That is, any shortfall is not carried over to the next year but is paid before Newown Developmem incorporoled receives any cash from operations. Ahter ABC Fund is paid its preferred retum. Newiown Development incorporated will recelve a 5 percent operating retum on its contributed capitai. This is also noncumulative Any remaining cash flow from operations is spit 5050 to each party. When the property is sold, proceeds from sale wal be astributed as foliows: Fint, tepoy the intial captal imvestment by Aac fund Next, repay the initial capital investment by Newown Development incorporoted Nex, pay ABC Fund en 11 percent IRR preference on its invesiment. Thereatter, split all proceeds 5050. Required: Use the above assumpoons to calculate the cash flows that each parfy will recelve and its erpected IRR. ONegative amounts should be indicated by a minus sign. Pound IRR anvwers to 2 decimal places.)