What is the (internal rate of return [IRR]) for Plaza

Suites based on the following assumptions?

Purchase price:

$1,000,000

Acquisition costs:

$50,000

Year one potential rental income:

$145,000

Potential rental income annual growth rate:

3 percent

Annual vacancy and credit loss projection for the next six years:

8 percent

Year one operating expenses:

$45,000

Operating expenses annual growth rate:

3 percent

Projected end of year five sale price:

Capitalize year six NOI at 8.5

percent

(Rounded to the nearest $1,000.)

End of year five cost of sale:

4 percent of sale price

Anticipated holding period:

Five years

The following additional assumptions are needed for the "With

Financing/Before Tax" analysis:

Maximum loan-to-value (LTV) ratio:

75 percent

Minimum debt-service coverage ratio (DSCR):

1.2

(Calculate the maximum loan amount using LTV ratio and DSCR, and use

the lesser of the two amounts rounded down to the nearest $1,000 as the

loan amount for the analysis.)

Interest rate:

8.5 percent

Amortization period:

20 years

Loan term:

10 years

Payments per year:

12

Loan costs:

2 percent of loan amount

Before determining the before-

tax equity yield, it's necessary to find the loan

amount available.

Available loan amounts can be calculated using the LTV

ratio or DSCR.

How would I use Excel and a financial calculator to solve this question? Please actually show me how the answer is calculate.