A property has the following capital structure: If the first lien is in default and noticed for foreclosure sale, what is the best action for the 2nd lien lender to take? Let foreclosure happen then own and manage property Force Borrower into bankruptcy Bring 1st lien into compliance Purchase property for $250,000 QUESTION 25 in year 3. Annual Average TI/LC costs for years 2 \& 3 is $125,000 per year. The sales price in year 3 is a cap rate of 6%. The IRR is (nearest tenths): 14.8%10.9%11.0%9.8% QUESTION 26 What is the NPV for question 25 (nearest dollar) assuming a 12% required return? $6,100,000$5,927,620$6,246,807$6,958,949