LBO deal is financed with $30\%$ debt. The price paid by the financial sponsor at year $0$ is $1,4$ billion out

of which $980$ million is equity and $420$ million is debt. The acquired target is projected to generate an

annual free cash flow after interest expense of $84$ million. Each year the full amount will be used for

debt repayment. Estimate the equity worth by the end of year $5$ if the targeted Sale price is $$2$ billion.

Calculate the IRR and Cash return from this transaction.