INSTRUCTIONS: You are considering a real estate investment with the following parameters and a five year holding period. Calculate the unlevered and levered NPV and IRR. Please make your calculations to the right of the data on this worksheet. Based solely on these calculations, would you proceed with the investment and why? Purchase price 20,300,000 Anticipated NOI Year 1 Tear 2 Year 3 Year 4 Year 5 Year 6 (stabilized) 1,500,000 1,600,000 1,650,000 1,800,000 1,900,000 2,000,000 Financing LTV Payment frequency Mortgage rate Mortgage rate per month Term (years) Amortization (years) 65.0% Monthly 3.7% 0.3060% 5 25 Anticipated cap rate on sale Required Equity Return Required WACC 9.0% 15.0% 10.0%