Comprehensive Pro Forma and Analysis You have been asked to analyze the potential purchase of Regency Manor, an apartment building w the following characteristics: X Purchase Price: $1,000,000, of which 35% is allocated to the land and 65% to the buildir which is a Class 1(4%CCA) asset. X Initial loan: $650,000 mortgage at j2=7% with a 20 -yoar amortization, 3-year term, monthly payments, rounded up to the next higher dollar. X The investor's projoctions for the building for the upcoming year of operation are as follows: Gross Potential income =$150,000 increasing at 2% per year Vacancy Rate =3% of Gross Potential Income Operating Expenses =$75,000 increasing at 2,5% per year X The investor has a 50% marginal tax rate and intends to sell the building at the end of the thi year. The allocation to land and building is expected to remain at 35% and 65%, respectively X The proporty value (land and building) is expected to increase a total of 5% over the three-ye holding period. X A commission of 4% of the gross sale price is required at the time of sale. (a) Construct an after-tax cash flow pro forma for the intended holding period. (b) Calculate the affer-tax equity reversion given that 50% of the capital gain is taxable and t only closing costs are the commission. (c) Calculate the gross income multiplier (GIM) for Year 1. (2 pis) Calculate the operating expense ratio (OER) for Year 1. ( 2 pts) Calculate the after-tax internal rate of return on equity (IRR). (2 pts) Calculate the net present value (NPV) of the investment if the investor requires an afterretum of j1=9%. (2pts) Based on the IRR and NPV measures, should the investor buy the building? Briefly explair