i need help with 25 and 26

ow TO SUBMIT EKAM A answers go on this side of tis pge DO NOT OPEN EXA in small umbers in iterme c MITED CALCULATORS AND RA FUN AL letters (A, B.C, DI ot small ( b,s. Adeyerne b. All other pages are ot graded in thispagn.onty, keep ther pege e RORS 6 anwers to 2 decmal saces eg 4 % of final anwr are ok, lrger em s Ory what is within is rectange Part III. NPV Formulas (2 points each, 6 points total) In cach question below, carefully write out the NPV as a funetion of a general annual discount rate i. Caleulate one final cash flow for each period, Le. your answer will look like NPV() - CFO + + + where CFO, CF1, CF2, . are numbers, not expressions. Commercial Real Estate Investment Bob buys a property that costs S1,000,000. Bob will own the property for two years. The NOI from the property for years 1-3 is to the right: Bob will sell the property at the end of year 2 at a cap rate that is 250 basis points lower than the cap rate at which he bought the property. Year NOI 25. Assume Bob does not use leverage. Write out the NPV of Bob's investment. S100,000 S105,000 S110,000 26. Assume Bob finances his purchase with a 50% LTV Fixed Rate IO loan at an annual rate of 5% w annual compounding and annual payments. Write out the NPV of Bob's investment