A restaurant is for sale for $$200,000.$ It is estimated that the restaurant will earn $$20,000$ a year for the next $15$ years. At the end of $15$ years, it is estimated that the restaurant will sell for $$350,000.$ Which of the following would be MOST LIKELY to occur if the investor's required rate of return is $15$ percent?

Multiple Choice

Not enough information provided to answer.

Investor would pursue the project.

Investor would pursue the project if the holding period were longer than $15$ years.

Investor would not pursue the project.A restaurant is for sale for $$200,000.$ It is estimated that the restaurant will earn $$20,000$ a year for the next $15$ years. At the end of $15$ years, it is estimated that the restaurant will sell for $$350,000.$ Which of the following would be MOST LIKELY to occur if the investor's required rate of return is $15$ percent?

Multiple Choice

Not enough information provided to answer.

Investor would pursue the project.

Investor would pursue the project if the holding period were longer than $15$ years.

Investor would not pursue the project.

A lender requires a $1\mathrm{.}20$ debt coverage ratio as a minimum. If the net operating income of a property is $$60,000,$ what is the maximum amount of debt service the lender would allow?

Multiple Choice

$$60,000$

$$50,000$

$$72,000$

$$30,000$

A lender requires a $1\mathrm{.}20$ debt coverage ratio as a minimum. If the net operating income of a property is $$60,000,$ what is the maximum amount of debt service the lender would allow?

Multiple Choice

$$60,000$

$$50,000$

$$72,000$

$$30,000$