Questions 4-6 are based on the following investment proposal

-Going-in yield or cap rate of 8% based on current occupancy rate of 90% -Investment horizon of 3 years

- Cap rate expected to remain unchanged over the investment horizon

- Investment to be half financed by debt at a rate of 4% p.a. over three years 4. What is the expected IRR with 50% debt financing if the occupancy and rentals remain unchanged over three years? a) 8% p.a b) 10% p.a. c) 12% p.a. d) None of the above. Should be _______% p.a. (fill in your answer)

5. What is the expected IRR without debt financing if rentals remain unchanged over three years but occupancy rose to 100% at end of year 3? a) 8% p.a.

b) 10% p.a.

c)12% p.a.

d) None of the above. Should be _______% p.a. (fill in your answer)

6. What is the expected IRR with 50% debt financing if rentals remain unchanged over three years but occupancy rose to 100% at end of year 3?

a) 8% p.a.

b) 10% p.a.

c) 12% p.a.

d) None of the above. Should be _______% p.a. (fill in your answer)