Question One You are considering the acquisition of a small office building. The purchase price is Sh 775,000, 75% of the purchase price can be borrowed with a 30-year, 7.5 % mortgage payable annually. The expected Net Operating Income from operations--assuming a 5-year holding period-are as follow:s: NOI 97.707 102.983 108,497 114.258 120.273 The before-tax cash flow from the sale of the property is expected to be Sh. 295,050 Required i) Calculate the before tax IRR on equity (10 marks) i) Should the property be purchased? (2 marks) iii) what are the alternatives to property disposition ( 3 marks) Question One You are considering the acquisition of a small office building. The purchase price is Sh 775,000, 75% of the purchase price can be borrowed with a 30-year, 7.5 % mortgage payable annually. The expected Net Operating Income from operations--assuming a 5-year holding period-are as follow:s: NOI 97.707 102.983 108,497 114.258 120.273 The before-tax cash flow from the sale of the property is expected to be Sh. 295,050 Required i) Calculate the before tax IRR on equity (10 marks) i) Should the property be purchased? (2 marks) iii) what are the alternatives to property disposition ( 3 marks)