done in excel

6. (25 Percent) Assume that you were given an opportunity to purchase a real estate project using an equity participation loan. The NOI for each vear of the holdino nerind are ehoum hala... Additional information: 1) Purchase price =$1,900,000 2) Estimated value of land =$500,000 3) Anticipated mortgage terms: a) Loan to value ratio =.80 b) Interest rate =5.25% c) Years to maturity =25 d) Points charged =3 e) Prepayment penalty =2% of outstanding balance f) Level payment, fully amortized g) Fixed interest rate, monthly payments 4) Participation terms: a) Share of NOI =15.5% over $130,000 b) Share of Appreciation =18% 5) Future sales price =$2,350,000 6) Estimated selling expenses as proportion of future sales price =5% 7) Client's minimum required before-tax rate of return on equity =12% Calculate: a. The before-tax cash flows and the before-tax equity reversion (you do not need to calculate the after-tax cash flows or reversion). b. The before-tax net present value to the investor