Explain how the levered IRR is 13.8% based on the information below

Purchase Price		$8,800,000
Acquisition Closing Costs	$264,000
Total Project Costs	$9,064,000
Annual Rent per Sq. Ft.	$19
Leasable SF		80,000
Operating Assumptions
Annual Rent Growth	3.0%
Annual Vacancy Allowance	8.0%
Operating Expenses ($/GSF)	$440,000
Insurance		$20,000
Property Taxes		$180,000
Annual Expense Growth	3.00%
Financing Assumptions
Loan Amount		$5,720,000
Interest Rate		8.0%
Amortization		20 years
Equity Amount		$3,344,000
Annual Debt Service	$574,132
Payment Frequency	Monthly
Exit Assumptions
Terminal Cap Rate	9.0%
Holding Period		10 years
Sales Expense		3.0%