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Suppose that you are contemplating an investment in an apartment building. Use the information' provided below to answer the questions that follow: Type of Property:

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Suppose that you are contemplating an investment in an apartment building. Use the information' provided below to answer the questions that follow: Type of Property: Number of Units: Apartment Building 50 $1,250 per unit per mo 3% per year 5% of Potential Gross $15 per unit per month 2% per year 40% of Effective Gross 5% of Effective Gross 3% of Future Selling Prion 5.5% $5 million 30% 15% $7.5 million Expected Purchan Terms: Loan Tean LoanAmount:InterestRate:AmortizationTerm:80%ofpurchaseprice5%peryearwithmonthlypaymentsandmoncompounding30years a. What is the IRR of the before-tax unlevered cash flows if the before-tax discount rate is 12%? b. What is the NPV of the before-tax levered cash flows

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