*Please show all of your work in excel format.

Consider a property investment that you finance with a down payment of 20%. For the remaining, you borrow $2,300,000 at a 6% rate MONTHLY amortized loan for 25 years. This property, with 2% of EBITDA as capital reserves in any year, will return a NOI of $250,000 in year 1. NOI is expected to grow at 2% for the following years. 82% of the property value is attributed to the building. The building will have no book value after 28 years (based on straight-line depreciation). What is the going-in cap rate for this property? If you plan to keep the property only for 6 years & the net sale proceeds at the end of year 6 is $3,400,000, what is the before-tax leveraged IRR? (Ignore the transaction costs at time of purchase)

Down Payment	20%
Initial Borrowing	2300000
Rate	6%	(monthly)
Time Period	25	(years)
EBITDA	2%	(of cap reserves)
NOI Year 1 Return	250000
NOI expected Growth	2%
Prop Value (building)	82%
life	28.00	years