How do you calculate annualized return with refinance?

[Rob Beardsley]

Normally calculating annualized returns is very simple: sum all of the profits and divide by principal and by holding period. However, when there is a refinance event in the model, the cash flows are much lower because the debt service is higher. Furthermore, the return of capital can't (shouldn't) be reflected in the profits since it is a payback of principal and not truly profits. 

How do you go about accurately generating an annualized return % in this situation (I understand IRR is the superior calculation but investors like to know metrics such as equity multiple, annualized return, and IRR)?

Thanks!!