1) The following data, objectives, and constraints have been provided with respect to a proposed venture: $3,900,000 29,500 Cost (including transaction costs) Net leaseable area (square feet) Financing specifications: a. Mortgage loan terms: 9 percent interest; 25 year monthly amortization schedule; renegotiable after 10 years b. Minimum acceptable current yield on equity funds: 6 percent Operating forecast for first year: Market rent per square foot (based on analysis of comparable properties) Vacancy rate (percent) Operating expenses, per sq. ft. of leaseable area $23.50 9 $9.50 1 If the minimum acceptable debt coverage ratio is 1.20 and the maximum loan-to-value ratio is 70 percent, what is the maximum total investment (combined equity funds) that will make the above proposal financially feasible? Please show your sets to arrive at this