If the annual irr for this property is $8\mathrm{.}5\%,$ then based on the cap rate in question $11,$ what does this imply is expected NOI growth rate for this property?

You do research and find that similar properties are selling at an $11\%$ cap rate. Using an $11\%$ cap rate, what price would you offer for this property?

Suppose you buy the property at the asking price of $$8,000,000$ and own it for exactly $1$ year.

You make the down$-$payment in part $(9).$

You collect the NOI in part $(3).$

You make the annual mortgage payment in part $(10).$

In two years, the NOI is expected to be the same.

You sell the property at the end of year $1,$ at a cap rate of $50$ basis points below the cap rate in part $(11)$ and you pay off the loan balance when you sell.

Compute the IRR on this investment.

Please use financial calculator to plug in the variables, this assignment is meant to be done without excel.