(35 pts.) You are to present an investment analysis of a new income-producing property for sale to a potential investor. The asking price for the property is $4,200,000; rents are estimated at $470,000 during the first year and are expected to grow at 2 1/2 percent per year thereafter. Vacancies and collection losses are expected to be 7 percent of rents. Operating expenses will be 32 percent of effective gross income. A 75 percent loan can be obtained at six and one-half percent interest for 30 year monthly payments. The property is expected to appreciate in value at 3 42 percent per year and is expected to be owned for five years and then sold. a. What is the investor's expected before- tax internal rate of return on equity invested (BTIRR)? b. What is the first-year debt coverage ratio? b. What is the first-year debt coverage ratio? c. What is the NPV using a 17 percent discount rate? d. What is the profitability index using a 17 percent discount rate? e. Is the investor likely to want the property? Why or why not? (35 pts.) You are to present an investment analysis of a new income-producing property for sale to a potential investor. The asking price for the property is $4,200,000; rents are estimated at $470,000 during the first year and are expected to grow at 2 1/2 percent per year thereafter. Vacancies and collection losses are expected to be 7 percent of rents. Operating expenses will be 32 percent of effective gross income. A 75 percent loan can be obtained at six and one-half percent interest for 30 year monthly payments. The property is expected to appreciate in value at 3 42 percent per year and is expected to be owned for five years and then sold. a. What is the investor's expected before- tax internal rate of return on equity invested (BTIRR)? b. What is the first-year debt coverage ratio? b. What is the first-year debt coverage ratio? c. What is the NPV using a 17 percent discount rate? d. What is the profitability index using a 17 percent discount rate? e. Is the investor likely to want the property? Why or why not