Use the following information to answer the remaining questions on this homework assignment. You have been tasked with analyzing the acquisition of a residential apartment complex. The purchase price is $14,000,000 and the holding period is 5-years. The NOI is forecast is shown below. Year 1 $900,000 Year 2 Year 3 Year 4 Year 5 $915,000 $930,000 $940,000 $950,000 Additional information: The appraisal indicates that the land value represents 30% of the purchase price. The property will be financed with a loan with a 30-year amortization period with monthly payments and an interest rate of 4.0%. The minimum debt coverage ratio is 1.25. The NOI is expected to grow at 2% after the forecast period and the terminal cap rate is assumed to be 6.25%. The target investor faces an income tax rate of 35%, tax rate on depreciation recapture of 25%, and a capital gains tax rate of 15%.