INSTRUCTIONS: You are considering a real estate investment with the following Calculate the unlevered and levered NPV and IRR. Purchase price 22,000,000 -22,000,000 Anticipated NOI Year 1 1,500,000 1,500,000 Tear 2 1,600,000 1,600,000 Year 3 1,700,000 1,700,000 Year 4 1,800,000 1,800,000 Year 5 (stabilized) 1,900,000 1,900,000 Financing LTV 65.0% 14,300,000 Payment frequency Monthly Mortgage rate 7.0% Mortgage rate per month 0.5750% Amortization Interest only Anticipated cap rate on sale 6.0% Required Equity Return 18.0% Required WACC 10.0% Leverred IRR : -24%