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Assume the original equity investors ( preferred 9 0 % and sponsor 1 0 % ) have been paid in full ( i . e

Assume the original equity investors (preferred 90% and sponsor 10%) have been paid in full (i.e., their initial investments of $486,400 and $54,044 have been distributed, respectively) and that $262,704 is still available to be distributed. The partnership agreement calls for the distribution to be made pro rata pari passu until the preferred partner reaches a return of 7.5%. Further assume the sponsor made an initial investment of -486,400 in year 0; and received distributions of $37,719 in year 1; $37,719 in year 2; $37,719 in year 3; and $373,244 in year 4 when the property was sold. What dollar amount is required to be distributed to the preferred partner in year 4 to achieve her preferred return of 7.5%?
Group of answer choices
$108,825
$140,000
$145,333
$120,000

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