please ans the question no 14

3. Net Operating Income (NOI) generated by the property in the 1 year of ownership NOI=EGI( Operating Expenses ) NOI=$1453809(50% of $1453809) NOI =$1453809$601,252=$726904 (Net Operating Income) 9. The down payment is the difference between the property value and the loan amount: Down Payment=Property Value-Loan Amount Down Payment =$8,000,000$605753.33 =$7394246.67 10. The antual mortgage payment can be calculated using the loan payment formula for an interest-only loan Mortgage Payment=Loan Amount Interest Rate Mortgage Payment =$605753.330.0725 Mortgage Payment=\$43917.12 (annual mortgage payment) 14. Suppose you buy the property at the asking price of $8,000,000 and own it for exactly 1 year. You make the down-payment in part (9). You collect the NOI in part (3). You make the annual mortgage payment in part (10). In two years, the NOI is expected to be the same. You sell the property at the end of year 1 , at a cap rate of 50 basis points below the cap rate in part (11) and you pay off the loan balance when you sell. Compute the IRR on this investment