PLEASE PROVIDE THROUGH EXPLANATIONS AND THE FORMULAS USED [IN EXCEL]

- A property is purchased for $3,500,000 (assume this is the "all-in" cost with closing costs, legal fees, etc). - The Project Sources are $2,500,000 in debt and $1,000,000 in equity. - Your Pro Forma projects a sale price at the end of Year 5 based on an Exit Cap Rate of 7%. Assume sales closing costs of 4% of the gross sale price - For the 5 years, assume project gross income will be (000): $500,$550,$600,$650,$725 - Assume operating expenses are (000): $300,$325,$350,$375,$400 - The $2,500,000 loan has an interest rate of 5.5% per year and 30 year amortization - Calculate NOI, Debt service, CFAF, Year 5 Sale Price and Net Sales Proceeds and then the IRR for the Deal