Listing price 5,000,000 Building value at purchase is 75% of the price. 25% represents land value. 40 year straight light depreciation schedule. Income tax rate of 25%. Purchase is financed by and interest only loan with interest rate of 7% and loan to value ration of 75%. NOI in the first year after purchase is $300,000. NOI expected to grow 6% each year. Expect to hold the property for 2 years, after the selling price is $5,500,000. Selling cost is 8% of the price. Capital gains rate is half of your income tax of 12.5%. 1. Calculate the after tax cash flows from operation for the next two years. 2. Cal air the after tax cash flows from sales at the end of the 2 year holding f period. 3. Calculate the internal rate of return from investing in this property