The investor is also approached by a lender, who is interested in providing a 30yr FRM with a 3.5% interest rate (monthly compounding) and LTV of 85%. However, the lender requires an equity participation of 30% in each years before tax cash flow (BTCF) and 35% in the before tax equity reversion (BTER). What are the after-tax IRR and NPV? Is this investment still worth undertaking? Considering the FRM, ARM and participating mortgage, which option would you recommend the investor and why?