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Ms. Emily Ali, a restaurant developer, is in the process of developing a new upscale Thai restaurant. The restaurant is in a prominent neighborhood in a large metropolitan city. The particular area where the restaurant is being built comprises residents with diverse cultural backgrounds. Ms. Ali estimates the total project cost will be $6,000,000 and that she will be able to fund 65% of the project with debt; the remainder will be in the form of equity. Currently, lenders are providing loans with a 6.5% interest rate and a twenty-five-year amortization period, and requesting a debt service coverage ratio of 2.0. Ms. Ali has been able to locate a wealthy investor willing to provide 35% of the total project cost for a required return of 16%. The investor is not looking for a long-term investment and would like to see a sale in Year 5, at which time the cap rate is estimated to be 11%. Ms. Ali has also estimated that cash flow in Year 1 will be $700,000 and will grow 6% each year through Year 5. The current tax rate is 30%. 1. Calculate the net present value of the project. (For calculations, refer to Illustration 11-4 and the end of-chapter Finance in Action case study.) 2. Determine if there is an opportunity for a carried interest. 3. Estimate how much of a carried interest the sponsor of the new venture could carve out for herself.