12 10 pts Leverage: Mortgage and Equity Values You are evaluating a property with an NOI of $120,000, and an 8% interest rate on a $1,000,000 30-year mortgage at 70% loan-to-value (LTV). What are the project's cap rate and Return on Equity (ROE)? NOI ADS BTCF $120,000 Value Mortgage Equity $1,000,000 Cap Rate Mortgage Constant Return on Equity Does this project have positive or negative leverage? Why? 12 10 pts Leverage: Mortgage and Equity Values You are evaluating a property with an NOI of $120,000, and an 8% interest rate on a $1,000,000 30-year mortgage at 70% loan-to-value (LTV). What are the project's cap rate and Return on Equity (ROE)? NOI ADS BTCF $120,000 Value Mortgage Equity $1,000,000 Cap Rate Mortgage Constant Return on Equity Does this project have positive or negative leverage? Why