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Annual debt service cover ratio (ADSCR) If you know the following information about project A Operating revenue= $ 1,000,000 Operating expenses= $ 600,000 Interest payment=

Annual debt service cover ratio (ADSCR)

If you know the following information about project A

Operating revenue= $ 1,000,000

Operating expenses= $ 600,000

Interest payment= $ 20,000

Loan (principle) repayment = $ 80,000

Calculate Annual debt service cover ratio (ADSCR

a. 1:4

b. 1:3

c. 1:2

d. 1:5

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