Smith and Weston Unlimited has formed a private equity real estate syndication to acquire and operate the Deloit Office Building. Smith and Weston will act as the general partner and will have 35 individual limited partners. The relevant cost and financial data are summarized as follows:

Cost breakdown
Land	$1,000,000
Improvements	$9,000,000	(capitalized)
Points	$100,000	(amortized over loan term)
Subtotal	$10,100,000
Organization fee	$100,000	(amortized over 5 years)
Syndication fee	$100,000	(capitalized)
Total funding required	$10,300,000
Financing
Loan amount	$8,000,000
Interest rate	4.75%
Term	25 years	(monthly payments)
Points	$100,000

Partnership facts and equity requirements

Organization: December, year 1

Number of partners: 1 general partner and 35 limited partners

Equity capital contribution: General partner, 10%; Limited partners, 90%

Cash assessment: None

Cash distributions from operations: General partner, 10%; Limited partners, 90%

Taxable income and losses from operations: General partner, 10%; Limited partners, 90%

Allocation of gain or loss from sale: General partner, 15%; Limited partners, 85%

Cash distribution at sale: Based on capital account balances

Operating and tax projections

Potential gross income (year 2): $1,300,000

Vacancy and collection loss: 10% of potential gross income

Operating expenses (year 2): 35% of effective gross income

Depreciation method: Straight-line, 39 years

Projected growth in income: 2% per year

Projected resale price after 5 years: $12,750,000

Ordinary income tax rate: 24%

Capital gains tax rate: 15%

Selling expense: 5%

a. Determine an estimated return (ATIRR) for a limited partner. (Hint: Consider all limited partners as a single investor and the depreciation recapture tax to be the lesser of the ordinary income tax rate or the 25% maximum recapture rate.) Please show in excel with formulas displayed otherwise the answer is pointless. Thank you.