The following represents the projected cash flows from a retail center. Using this income stream, what

purchase price, assuming an all-cash investment, would provide an overall yield of 12.00%?

Cash Flows:

Year 1 - $763,200

Year 2 - $786,096

Year 3 - $736,930

Year 4 - $915,840

Year 5 - $938,736, plus the proceeds from a sale of the property at the end of Year 5.

That sale price is projected by using estimated Year 6 income of $954,818, divided by a Terminal

Cap Rate of 6.50%.

Group of answer choices

$11,550,212

$10,450,312

$11,282,550

$10,949,860

Using the purchase price derived in problem #1, what is the return on asset (going-in cap rate) based on Year 1 income?

Group of answer choices

5.29%

7.88%

6.76%

5.26%

Suppose that an investor purchases the retail center in problem #1 today (year zero) for $12,200,000. Based on the projected cash flows shown in problem #1, what is the projected unlevered internal rate of return on this investment?

Group of answer choices

12.00%

11.36%

10.05%

9.47%

Suppose that the purchase price is $12,200,000, and the buyer borrowers 60% of the price at an interest rate of 5.50% on a 25-year amortization schedule. What is the outstanding loan balance at the end of year 5?

Group of answer choices

$6,534,676

$6,183,021

$6,913,428

$6,211,382

What is the projected levered internal rate of return on this transaction?

Group of answer choices

20.50%

22.50%

15.50%

18.50%