PER CHEGGS POLICY YOU ARE ALLOWED TO ASK ONE QUESTION WITH FOUR SUBPARTS. PLEASE ANSWER ALL

Your employer, Kent, LLC, is considering an investment in an office building that has the following cash flows: Purchase in Year 0: $-2,750,000 Year 1: 180,000 Year 2: 276,000 Year 3: 220,000 Year 4: 239,000 Year 5: 250,000 and a sale @ $3,190,000 takes place EOY 5 The company's weighted average cost of capital that they use as their discount rate for such calculations is 7%

assume the company bought the office building using 70% mortgage that at an interest rate of 4% over 240 months

1a. what would be the net cash flows after debt service in year three? $105,470 $80,019 $100,018 $2,980,000

1b. what would be the balance of the loan at the end of year 5? $1,240,000 $1,376,320 $1,290,300 $1,577,033

1c. what would be the total cash flows in year five taking into consideration the cash flows, annual debt service, sales price, and the balance of the loan at the EOY 5? $1,662,985 $1,937,607 $1,722,986 $1,915,172

1d. what is the leveraged IRR of the project? 32.15% 24.58% 21.48% 22.85%