9. Assume the following for a 3 year investment horizon for a potential acquisition.Round to nearest $1000.

Annual Gross Rent: $1.2M; CAM/Tax: $300K; Cap Exp: $10K; No vacancy allowance

Loan will be 75% of Acquisition Price of $8.6M

No sales cost at exit. Rents increase 5% per year, no CAM/Tax increases.

Initial Cap Rate: 8%; Exit Cap Rate: 8.25%; Debt Service: $432,000 per year;

Annual Debt Service payment breakdowns: Yr 1: $410K Interest/$22K Principal; Yr2: $400K Int/$32K Prin; Yr3: $390K Int/ $42K Prin

Assuming a project sale at end of year 3. Show the annual cash flows and then compute the Unlevered IRR and the Levered IRR