1. (60 points) You plan to purchase dryland cropland in Stanton County Nebraska. There are 160 acres currently available for $5,000/acre. You and your lender feel that an NOI of $240/acre/year is reasonable and your lender's underwriting and loan terms call for an LTV not to exceed 65%, a DSCR of at least 12, and a fully amortizing 20-year loan with annual payments at 4.25%. Answer the following questions: (10 points) How much can you borrow per acre based on the property NOI, the lender's terms, and the lender's DSCR requirement? Ignore the LTV information for the moment. b. (10 points) If the $5.000 price per acre is also the appraiser's opinion of value, how much can you borrow per acre based on the lender's terms and LTV requirement? Ignore the DSCR information from la. c. (10 points) Using your answers to both la and lb above, determine the down payment amount if you agree to the lender terms and the seller's price. d. (10 points) How does your answer to le change if actions taken by the Federal Reserve result in interest rates dropping slightly to 4%? e 10 points) Using the rate from 1d. what price per acre brings the maximum loan amount for both underwriting criteria into line with each other? Hint use Goal Seek in Emel Lo drive your answer to lb to the amount in la by changing the price/acm . f. (10 point:) Alternatively, what NOI/acre brings the maximum loan amount for both inderwriting criteria into line with each other assuming $5,000/acre) Hint: use Goal Seek in Excel to drive your unswer to la to the amount in 15 by changing the Nol/ac 1 1. (60 points) You plan to purchase dryland cropland in Stanton County Nebraska. There are 160 acres currently available for $5,000/acre. You and your lender feel that an NOI of $240/acre/year is reasonable and your lender's underwriting and loan terms call for an LTV not to exceed 65%, a DSCR of at least 12, and a fully amortizing 20-year loan with annual payments at 4.25%. Answer the following questions: (10 points) How much can you borrow per acre based on the property NOI, the lender's terms, and the lender's DSCR requirement? Ignore the LTV information for the moment. b. (10 points) If the $5.000 price per acre is also the appraiser's opinion of value, how much can you borrow per acre based on the lender's terms and LTV requirement? Ignore the DSCR information from la. c. (10 points) Using your answers to both la and lb above, determine the down payment amount if you agree to the lender terms and the seller's price. d. (10 points) How does your answer to le change if actions taken by the Federal Reserve result in interest rates dropping slightly to 4%? e 10 points) Using the rate from 1d. what price per acre brings the maximum loan amount for both underwriting criteria into line with each other? Hint use Goal Seek in Emel Lo drive your answer to lb to the amount in la by changing the price/acm . f. (10 point:) Alternatively, what NOI/acre brings the maximum loan amount for both inderwriting criteria into line with each other assuming $5,000/acre) Hint: use Goal Seek in Excel to drive your unswer to la to the amount in 15 by changing the Nol/ac 1