A) A $1,000,000 fully amortizing, fixed rate mortgage with a 10 year term, monthly payments, an interest rate of 6%, and $12,000 closing costs. Calculate the effective interest rate.

B) Calculate the NPV to an investor of a property with the following characteristics.

i. Purchase Price = $2,000,000

ii. LTV = 50%

iii. NOI = $20,000

iv. A discount rate on the equity investment of 9%

vi. Land Value of 2,000,000

VII. 10 year holding period.

Please show work.