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3 ( 3 0 points ) . Black Mountain Financial wants to buy Park Estates for $ 2 6 , 0 0 0 , 0

3(30 points). Black Mountain Financial wants to buy Park Estates for $26,000,000. Next year (year 1), Park Estates is expected to have potential gross income of $5,800,000; effective gross income of $3,400,000; and net operating income of $2,300,000. Artistic Financial Bank makes commercial real estate loans that involve up-front fees of 2.00%, mature in 6 years, have a fixed annual interest rate of 4.56%, and are partially amortizing with a balloon payment of $15,000,000 at maturity. Lastly, the bank requires that the debt coverage ratio at origination be at least 1.30. Note that the points are the only up-front fees associated with the loan.
a. Whats the largest loan that the Black Mountain Financial could get from the bank? Round your answer to the nearest dollar and write it in the box.

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