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Assumptions: begin{tabular}{|r|r|} hline Discount and Terminal Rate & 8% hline LTV of Discounted Net Cash Flow Value & 60% hline Mortgage Terms: &

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Assumptions: \begin{tabular}{|r|r|} \hline Discount and Terminal Rate & 8% \\ \hline LTV of Discounted Net Cash Flow Value & 60% \\ \hline Mortgage Terms: & \\ \hline Interest Rate & 7% \\ \hline Amortization & 25 \\ \hline \end{tabular} SHOW YOUR WORK: What is the value of the asset based on discounted net cash flow, assuming you sell it in Year 6 ? Using this value from the question above (discounted net cash flow), what is the cap rate based on the first year of cash flow? What is the DSCR and DY in each of the 5 years based on the above terms? 3 (using annual payments and debt at year end) 4 What is the LTV in the 5 th year? EXTRA CREDIT (1/2 POINT) Using the NOI above, would you make this loan with the assumptions below: \begin{tabular}{r|r} \hline Discount/Terminal Value & 6% \\ \hline LTV & 70% \\ \hline Interest Rate & 8% \\ \hline Amortization & 30 \end{tabular} If not, what loan amount would you provide? Assumptions: \begin{tabular}{|r|r|} \hline Discount and Terminal Rate & 8% \\ \hline LTV of Discounted Net Cash Flow Value & 60% \\ \hline Mortgage Terms: & \\ \hline Interest Rate & 7% \\ \hline Amortization & 25 \\ \hline \end{tabular} SHOW YOUR WORK: What is the value of the asset based on discounted net cash flow, assuming you sell it in Year 6 ? Using this value from the question above (discounted net cash flow), what is the cap rate based on the first year of cash flow? What is the DSCR and DY in each of the 5 years based on the above terms? 3 (using annual payments and debt at year end) 4 What is the LTV in the 5 th year? EXTRA CREDIT (1/2 POINT) Using the NOI above, would you make this loan with the assumptions below: \begin{tabular}{r|r} \hline Discount/Terminal Value & 6% \\ \hline LTV & 70% \\ \hline Interest Rate & 8% \\ \hline Amortization & 30 \end{tabular} If not, what loan amount would you provide

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