Nick Brody is considering purchasing a home for \($600\),000 and flipping it in four years.

The expected rent is \($3\),500/month and expenses are \($750\)/month. Mr. Brody anticipates a rental increase of 2.0% per year, an expense increase of 2.0% per year, and a terminal cap rate in year 4 of 6%. Mr. Brody expects to borrow 80% from a traditional lender using a conventional 25-year fixed rate mortgage at 3.0%, amortized annually. If he anticipates a discount rate of 10% and a reinvestment rate of 2%, determine the following: (must develop an annual pro forma showing ALL work). Note: IRR and NPV should be calculated using the HP-12C and not by hand. MIRR is by hand.