answer question 3

1 pts Question 1 3 [The following information applies to the next three questions. You have recently partnered with an Austrian pension fund to develop an office building in Lehi. The office development has the following projected equity net cash flows per year (in thousands of USD). Equity CFS Year 0 1 2 Project equity $0 $4,000 $5,000 1$6,000 operating CF Project equity -$18,000 $0 $0 $16,000 capital CF Project equity $18,000 $4,000 $5,000 $22,000 total CF All cash flows are received at the end of the year. There are to be two classes of equity investors. The Austrian pension fund will contribute 85% of the required initial investment of $18,000 while your firm is the operating partner and will contribute 15% of the pecuniary costs as well as all of the human capital. Operating cash flows will be split pari passu, i.e., according to each partner's initial cash contribution. The waterfall for the cashflows from the reversion is as follows: First, return the pension fund's principal Second, return the operating partner's principal Third, distribute 75% of any remaining cash flows to the pension fund and 25% to the operating partner.) What is the cashflow to your firm (the operating partner) in year o (in $1000s)? lack 0-$18,000 O $15,300 $13,500 O $4,500 0 $2,700 D Question 3 What is the cashflow to your firm in year 3 (in 1000s)