Consider a property investment that you finance with 20% down payment. For the remaining, you borrow 2'300'000 at a 6% rate monthly amortized loan for 25 years. This property, with 2% of EBITDA as capital reserves in any year, will return a NOI of 250'000 in year 1. NOI is expected to grow at 2% for the following years. 82% of the property value is attributed to the building. Also, the building will have no book value after 28 years (based on straight-line depreciation).

1- If you plan to keep the property only for 6 years and the net sale proceeds at the end of year 6 is 3'400'000, what is the Before tax leveraged IRR? Ignore transaction costs at time of purchase. ( Please show your work in Excel with formulas)