A develоper puts in 5% equity аnd а reаl estate investоr puts in 95% оf the equity for a real estate development deal. The preferred rate (Pref) is 10%, the promoted interest (promote) is 20% to the developer and the 80% to real estate investor and there are no fees. The acquisition and development costs of a deal (occurring at time 0), are $100. At the end of the year the project is sold for $110. Which statement is true?