1. A $100,000 mortgage loan at 10.00% on a 25-year amortization schedule has been performing well. However, it is now 10 years later and interest rates have risen to 12.00%. The Bank that holds the mortgage loan wants to sell it and they are willing to take a discount. How much is the loan worth if you wanted to purchase it today?

2. A real estate investment is available at an initial cash outlay of $10,000, and is expected to yield cash flows of $3,343 per year for five years. What is the internal rate of return (IRR)?

3. An income-producing property is priced at $600,000 and is expected to generate the following NOI: Year 1: $42,000; Year 2: $44,000; Year 3: $45,000; Year 4: $50,000; and Year 5: $650,000. Would an investor requiring a return of 15% be wise to invest at the current price? What is the NPV?