26. Assume Bob finances his purchase with a 60% LTV Fixed Rate 10 loan at an annual rate of 5% with Aannual compounding and annual payments. Write out the NPV of Bob's investment: Commercial Mortgage Ann buys a property that costs $1,000. She finances the purchase with a 60% LTV mortgage. She gets a 15-year interest only fixed rate mortgage at an annual interest rate of 10%, with annual compounding and annual payments. Ann must pay 2 points upfront in mortgage closing costs (as a % of the loan amount). The loan has a 5/4/3/2/1 prepayment penalty structure (she must pay a 5% penalty if she prepays at any time in the first year, 4% penalty in the second year etc). Suppose Ann will sell the property in 3 years, after her 3d year's mortgage payment and pay off the balance when she sells. 27. Write out the NPV of Ann's mortgage Part II. NPV Formulas (2 points each, 6 points total} In each question below, carefully write out the NPV as a function of a general annual discount rate i Calculate the final cash flow for each period (it must be one number, not an expression). Commercial Real Estate Investment Bob buys a property that costs $1,000. Bob will own the property for two years. The NOI from the property for years 1-3 is to the right: NOI $100 $105 $110 Year Bob will sel the property at the end of year 2 at a cap rate thai is 120 basis points lower than the cap rate at which he bought the property. 25. Assume Bob does not use leverage, Write out the NPV of Bob's investment. 26. Assume Bob finances his purchase with a 60% LTV Fixed Rate 10 loan at an annual rate of 5% with Aannual compounding and annual payments. Write out the NPV of Bob's investment: Commercial Mortgage Ann buys a property that costs $1,000. She finances the purchase with a 60% LTV mortgage. She gets a 15-year interest only fixed rate mortgage at an annual interest rate of 10%, with annual compounding and annual payments. Ann must pay 2 points upfront in mortgage closing costs (as a % of the loan amount). The loan has a 5/4/3/2/1 prepayment penalty structure (she must pay a 5% penalty if she prepays at any time in the first year, 4% penalty in the second year etc). Suppose Ann will sell the property in 3 years, after her 3d year's mortgage payment and pay off the balance when she sells. 27. Write out the NPV of Ann's mortgage Part II. NPV Formulas (2 points each, 6 points total} In each question below, carefully write out the NPV as a function of a general annual discount rate i Calculate the final cash flow for each period (it must be one number, not an expression). Commercial Real Estate Investment Bob buys a property that costs $1,000. Bob will own the property for two years. The NOI from the property for years 1-3 is to the right: NOI $100 $105 $110 Year Bob will sel the property at the end of year 2 at a cap rate thai is 120 basis points lower than the cap rate at which he bought the property. 25. Assume Bob does not use leverage, Write out the NPV of Bob's investment