Recreate the following in XLS then answer the following questions:

Cash Flow Before Debt Service - $10,000 per year that increases 1.25% per year.

3 year hold capitalize the 4th year NOI of $16,000 by a terminal cap rate of 10% and deduct a 2% cost of sale. Paste XLS and use ~ to show formulas.

a. What is the Return On this Investment?

b. What is the Return Of this investment?

c. What is IRR if we paid $50K for this asset?

d. Cap Year One by 6%

e. How should we now reconcile the values reported in C and D?