You are contemplating an office investment and are exploring two different investment scenarios. The office deal has the following expectations/assumptions for both scenarios: purchase price of $50,000,000, going-in cap rate of 5.5%, capital expenditure-to-net operating income ratio of 30%, sales transaction fee of 2.5% of the sales price at the end of Year 5, and 10-year interest only balloon loan with an initial loan amount of $35,000,000 and annual interest rate of 4.25%. Scenario 1 assumes a constant 3% NOI growth rate and 5.8% exit cap rate. Scenario 2 also assumes a constant 3% NOI growth rate, but expects the exit cap rate to be 6.0%. For a 5-year holding period, what is the difference between the calculated IRRs for Scenario 1 and Scenario 2, i.e., (Scenario 1 5-Year IRR) minus (Scenario 2 5-Year IRR)? Arial 3 (12pt) T Paragraph % DOO fx Mashups 166 ABC ' , HTML CSS Path: p Words:0 You are contemplating an office investment and are exploring two different investment scenarios. The office deal has the following expectations/assumptions for both scenarios: purchase price of $50,000,000, going-in cap rate of 5.5%, capital expenditure-to-net operating income ratio of 30%, sales transaction fee of 2.5% of the sales price at the end of Year 5, and 10-year interest only balloon loan with an initial loan amount of $35,000,000 and annual interest rate of 4.25%. Scenario 1 assumes a constant 3% NOI growth rate and 5.8% exit cap rate. Scenario 2 also assumes a constant 3% NOI growth rate, but expects the exit cap rate to be 6.0%. For a 5-year holding period, what is the difference between the calculated IRRs for Scenario 1 and Scenario 2, i.e., (Scenario 1 5-Year IRR) minus (Scenario 2 5-Year IRR)? Arial 3 (12pt) T Paragraph % DOO fx Mashups 166 ABC ' , HTML CSS Path: p Words:0