You acquire a property for $10,000,000. The property has gross income in year-one of $1,000,000 growing by 3% per year. Year-one expenses are $400,000 growing annual by 2%. You have Capital Expenditures of $100,000 per year that does not grow (Cap Ex Below NOI). You expect to sell the property at the end of year five at a 5.0 cap rate. Selling costs are 2% of gross sales proceeds.

a. How much is your NOI in each of the years 1-6? b. How much is your Cash Flow in each of the years 1-5? c. How much are your net sales proceeds at the end of year 5 after deducting selling costs but not deducting for income taxes? d. How much is your cash flow in each of the years 1-5 plus your sales proceeds net of selling costs? e. How much is the IRR on this investment? f. Your initial basis in the property is $10,000,000. Your gain or loss in the sale is your sale price in Year 5 less selling cost at the end of year 5 less your initial investment. How much is your gain or loss?