Can you answer step $2$&$3$

Homework Problem - NPV Step - calculate the net o eratin Potential gross income -Vacancy & collections loss Effective gross income -Operating expenses -Capital expenditures Net operating income -Debt service Before tax cash flow Step 2 - calculate the debt service Selling price: Use 12 payments per year n = 30 * 12 = 360 I = 7.0% Loan to Value 70% Solve for payment (pmt) = *12 = Multiply income NOI 1 180,000 18,000 162,000 64,800 8,100 89,100 1,056,000 739200 2 185,400 18,540 166,860 66,744 8,343 91,773 8.440/0 3 190,962 19,096 171,866 68,746 8,593 94,526 4 196,691 19,669 177,022 70,809 8,851 97,362 5 202,592 20,259 182,332 72,933 9,117 100,283 6 208,669 20,867 187,802 75,121 9,390 103,291 (you are looking at cost over the 12 month period) Step 3 - calculate the selling price in year 5 Selling price = NOI/Cap rate Selling price = 103,291/.0875 = 1,180,469