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please see the question Question #2: Incorporating Investor Returns into Stage 2 Analysis. You are pulling together investor financing for a small restaurant building you

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please see the question

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Question #2: Incorporating Investor Returns into Stage 2 Analysis. You are pulling together investor financing for a small restaurant building you have under contract. Factor Year 0 Year 1 Year 2 Year 3 Cash Flows from... Operations $ 42,000 $ 44,000 $ 46,000 Investing $ (600,000) $ 650,000 Financing $ 450,000 $ (36,000) $ (36,000) '5 (470,000) Leveraged Cash Flows S (150,000) S 6,000 S 8,000 3 226,000 02(a). What is the leveraged internal rate of return for this project? Q2(b). You propose to an Investor that they contribute 80% of the equity required forthe project. In exchange, they'll receive 70% of the cash flows from the project. Show the Investor's cash flows and their returns by constructing an "Investor's Returns" table similar to what we constructed in Lecture 10 in Excel and pasting it below. Your Investor's Returns table should include the following items: 1. Equity Required 2. Investor's Cash Flows (multiple rows required) 3. Internal Rate of Return 4. Net Present Value (using a 10% Discount Rate) Hint: Your Investor's Returns table should contain approximately 11 rows assuming no rows for spacing @2(c). Show your cash flows and their returns by constructing an "Entrepreneur's Returns" table similar to what we constructed in Lecture 10 in Excel and pasting it below. Your Entrepreneur's Returns table should include the following items: 1. Equity Required 2. Entrepreneur's Cash Flows (multiple rows required) 3. Internal Rate of Return 4. Net Present Value (using a 22% Discount Rate) Hint: Your Entrepreneur's Returns table should contain approximately 11 rows assuming no rows for spacing

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