Question
Assume a building with NOI of $250,000. The value of the building is derived with a 5.5% cap rate. If the annual DSCR is 1.21
Assume a building with NOI of $250,000. The value of the building is derived with a 5.5% cap rate. If the annual DSCR is 1.21 times based on a 25-year fully amortizing loan with an interest rate of 5%, what is the amount of the loan? Alternatively, the loan represents 65% of value.
Group of answer choices
$2,690,125
$2,954,545
$2,750,450
$2,855,890
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Contemporary Engineering Economics
Authors: Chan S. Park
5th edition
136118488, 978-8120342095, 8120342097, 978-0136118480
