Equity investor finances $4.05M of the $6.75M purchase price with a mortgage offering a 5-year maturity, 25-year amortization period and 5% interest rate - project before-tax cash flows (BTCF) for a total of 5 years. > Construct an amortization table detailing the scheduled payment, components to interest and principal, and remaining balance assuming annual payments > The BTCF is given by the difference between net income after reserves anc the scheduled mortgage payment > Calculate the present value based on a required return of 12% > To find the NPV, the equity contribution equals the purchase price less the initial mortgage balance plus origination fees > Use the IRR formula to calculate the levered return on the investment