Assumptions: Purchase Price =$265,000 Monthly rent =$2,800 Rent growth rate =3% Vacancy rate =10% (of PGI) Opex =30% (of EGI) Capex =5% (of EGI) Buying costs =2% Selling costs =3% Capital gains tax rate =20% Depreciation recapture tax rate =25% Your ordinary income tax rate =24% LTV ratio =80% Annual interest on loan =5% Holding period =8 years Annual miscellaneous income =$0 MI growth rate =0% Length of loan =30 years Depreciation of residential property =27.5 years Percent of purchase that is land =10% 2022 sales price =$554,000 2019 offer price =$510,000 2017 offer price =$460,000 7) If Lisa sold the property after year 5 what is her ATIRR? A) 48.77% B) 40.93% C) 41.57% D) 45.17% 8) Assume that you calculated the ATER after year 3 as $275,000, the after-tax cash flow in year 4 was $6,800 and grew by 3% until year 8 , and the ATER in year 8 was $300,000. Use this information to calculate the incremental IRR for not selling the property and collecting rents for years 48. What is the incremental IRR for not selling the property? A) 2.88% B) 4.29% C) 41.90% D) 6.40%