You are considering to invest in a new apartment building with multiple units. the listing price is 5 million. building value at purchase is 75% of the price. the rest or 25% represent the land value. the building is subject to a 40 year straight line depreciation schedule. You have an income tax rate of 25%. the purchase is to be finance by the interest only loan with an interest rate of 7% and a loan to value ratio of 75%. You estimate that the net operating income in the first year after purchase is 300,000 net operating income is expected to grow by 6% each year. You expect to hold the property for two years. after two years of selling price is expected to become 5.5 mil the selling cost is 8% of the price. capital gains tax rate is half of your income tax or 12.5%. A) what are the capitalisation rates now and in 2 years for this apartment building? Compare the two capitalisation rates and explain and difference. B) calculate the after tax cash flows from Operation for the next 2 years. C) calculate the after tax cash flow from sales at the end of the 2 year holding period. D) calculate the internal rate of rerun from Investing in this property. Should you buy this property and why