Apache's real estate department is considering buying a hangar and leasing it out to private jet operators. They ask you to calculate the NPV and IRR of the investment and have given you the data below. Assume that the hangar is sold in year 25 and that the mortgage runs 25 years. Please see below information. Please use the excel image format to answer question and show equations used.

Item	Value	Inflator
Square Footage	1,910
Property Price ($)	1,015,000
Down Payment	10%
Interest Rate	3.9%
Closing Costs at Start	8.00
Broker Fee in 25 years	5%
Yearly Appreciation	1.5%
Rent/ sq ft/ Inflator	3.00	1%
Op, Costs/ year ($) / Inflator	11,640	1%
Tax Rate	21%
Depreciation/ year ($)	4,524

L M N R S T W X Y Z AB AC o u P 12 Q 13 U 17 V 18 AA 23 8 2 10 14 15 16 19 20 21 22 24 25 A B D E F G H H 1 J K 2 1 2 3 4 5 6 Z Key Assumptions Square footage 1,910 Property price (S) 1,015,000 Down payment 10.0% Interest rate 3.9% Closing costs at start 8 Broker fee in year 25 5.0% . Property Value 0 Yearly appreciation 1.5% 1 Mortgage Balance 2 Net Property Value 3 3 Operating Assumptions 4 Rent/sq.ft. / Inflator 3.00 5 Op. costs/yr. (S) / Inflator 11,640 6 Tax rate 21.0% 7 Depreciation/year (S) 4,525 8 Cash Flows 9 Rent Income 0 minus: Operating Costs 1 minus: Debt Amortization 2 plus: Interest tax shield 3 plus: Depreciation tax shield 4 minus: Initial Expenses 5 plus: Sale Property in year 25 6 Total Cash Flows 7 IRR 8 NPV @ 5% 9 0 Note: Tax shields are the tax gains from expensing interest or depreciation. The general formula is interest expense x tax rate for interest tax shield. 1 2 3 2 7 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 B Beg. Balance 1 Payment 5 Interest 5 Principal - Ending Balance B 3 n L M N R S T W X Y Z AB AC o u P 12 Q 13 U 17 V 18 AA 23 8 2 10 14 15 16 19 20 21 22 24 25 A B D E F G H H 1 J K 2 1 2 3 4 5 6 Z Key Assumptions Square footage 1,910 Property price (S) 1,015,000 Down payment 10.0% Interest rate 3.9% Closing costs at start 8 Broker fee in year 25 5.0% . Property Value 0 Yearly appreciation 1.5% 1 Mortgage Balance 2 Net Property Value 3 3 Operating Assumptions 4 Rent/sq.ft. / Inflator 3.00 5 Op. costs/yr. (S) / Inflator 11,640 6 Tax rate 21.0% 7 Depreciation/year (S) 4,525 8 Cash Flows 9 Rent Income 0 minus: Operating Costs 1 minus: Debt Amortization 2 plus: Interest tax shield 3 plus: Depreciation tax shield 4 minus: Initial Expenses 5 plus: Sale Property in year 25 6 Total Cash Flows 7 IRR 8 NPV @ 5% 9 0 Note: Tax shields are the tax gains from expensing interest or depreciation. The general formula is interest expense x tax rate for interest tax shield. 1 2 3 2 7 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 B Beg. Balance 1 Payment 5 Interest 5 Principal - Ending Balance B 3 n