Please answer both A & B

An investor is considering the acquisition of a "distressed property" which is on Northlake Bank's REO list. The property is available for $201,200 and the investor estimates that he can barrow $160,000 at 4.5 percent interest and that the property will require the following total expenditures during the next year: Required: o. The investor is wondering what such a property must sell for after one year in order to earn a 20 percent retum (iRR) on equity. b. The lender is now concerned that if the property does not sell, investor may have to carry the property for one additional year. He believes that he could rent it (starting in year 2) and realize a net cash flow before debt service of $1,560 per month. However, he would have to make an additional $7,560 in interest payments on his loan during that time, and then sell. What would the price have to be at the end of year 2 in order to earn a 20 percent IRR on equity? Answer is complete but not entirely correct. Complete this question by entering your onswers in the tabs below. The investor is wondering what such a property must sell for atter one year in order to earn a 20 percent retum (IRR) oh equity. Note: Do not round intermediate talculations. Round your final answer to nearest whole dollar amounte. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. The lender is now concemed that if the property does not sell, investor may have to carry the property for one additional year. He believes that he could rent it (starting in year 2 ) and realize a net cash flow before debt service of \$1,560 per month. However, he would have to make an additional $7,560 in interest payments on his loan during that time, and then sell. What would the price have to be at the end of year 2 in order to earn a 20 percent IRR on equity? Note: Do not round intermediate calculations. Round your final answer to nearest whole dollar amount