Please, solve the following problem related to real estate finance for construction. The topic of the problem is preferred equity.

Solve it in the following Excel template:

Please, do not copy the answer from someone else cause I will notice.

Investor Capital Inc. (ICl) has decided to enter into a joint venture with Property Developers Inc. (PDI) to develop and operate an office building. The project will require an initial equity investment of $50 million, with ICl investing $45 million and PDI investing the remaining $5 million. We assume that each party invests its capital and then participate in year-end cash flows as projected below. It is further assumed that the property will be sold at the end of the fifth year for net proceeds of $75 million. The joint venture agreement specifies that ICl will receive a 5 percent noncumulative, preferred return on its $45 million of equity. Only after ICl receives its preferred return, will PDI receive a 5 percent noncumulative return on its $5 million of equity. Any remaining cash flow is then split 50/50. All preferred returns are calculated by multiplying the respective percentage but the partner's initial investment. When the property is sold, cash flow is distribute as follows: i. An amount to ICl equal to its initial equity investment ii. An amount to PDI equal to its initial equity investment iii. An amount to ICl sufficient to earn a 12%/RR on its equity investment iv. Any remaining cash flow is distributed 50/50 1. Prepare a summary of cash flows to each investor 2. Determine the amount, if any, of cash flow distributed to ICl to satisfy item iii. above. 3. Prepare a schedule and determine the total IRR to each investor. 16 A. ICI B. PDI 35 C. Reconcilaition (ICI and PDI) Investor Capital Inc. (ICl) has decided to enter into a joint venture with Property Developers Inc. (PDI) to develop and operate an office building. The project will require an initial equity investment of $50 million, with ICl investing $45 million and PDI investing the remaining $5 million. We assume that each party invests its capital and then participate in year-end cash flows as projected below. It is further assumed that the property will be sold at the end of the fifth year for net proceeds of $75 million. The joint venture agreement specifies that ICl will receive a 5 percent noncumulative, preferred return on its $45 million of equity. Only after ICl receives its preferred return, will PDI receive a 5 percent noncumulative return on its $5 million of equity. Any remaining cash flow is then split 50/50. All preferred returns are calculated by multiplying the respective percentage but the partner's initial investment. When the property is sold, cash flow is distribute as follows: i. An amount to ICl equal to its initial equity investment ii. An amount to PDI equal to its initial equity investment iii. An amount to ICl sufficient to earn a 12%/RR on its equity investment iv. Any remaining cash flow is distributed 50/50 1. Prepare a summary of cash flows to each investor 2. Determine the amount, if any, of cash flow distributed to ICl to satisfy item iii. above. 3. Prepare a schedule and determine the total IRR to each investor. 16 A. ICI B. PDI 35 C. Reconcilaition (ICI and PDI)