Based on information - we need to determine Before-Tax IRR. Also, does the information for Cash Flow from Sale match Key assumptions?

FIN 460 Project #1 Valuation Mode Key Assumptions Asking Price Annual Rent Annual Rent Growth vacancies and collection losses (% of rent) Operating Expenses(% of gross rent Property annual appreciation Years owned Sales Commission 285,000 27,300 1.0% 1.5% 1.12 4% Loan Information Equity Loan Amount Loan Rate Term Payment Annual Payment MortgageEnd 57,000 228,000 4.75% 15 1,800 21,596 168,802 Calculate the PV with only 10 years remaining on the loan. 6% Rental Income Vacancy & Collection Loss Effective Gross Income Operating Expenses Net Operating Income Debt Service Before-Tax Cash Flow 25,350 380 25,730 11,967 13,763 25,860 391 26,251 15,011 11,240 25,604 26,118 26,379 Grow by annual rent growth % of rents from problem 25,989 13,403 12,586 26,515 16,813 9,703 403 26,783 18,830 7,952 %of gross income from problem 12,885 11,708 10,361 8,824 7,074 Cash Flow from Sale -Year 5 Sales Price Sales Expenses Mortgage Balance Before-Tax Cash Flow 346,746 20,805 168,802 Based on annual appreciation during ownership period Include sales commission Before-Tax IRR Use Goal Seek to target the 15% BTIRR by changing the asking price Year Be sure to include cash to purchase and net sales proceeds