Could someone possibly do this homework for me? I am lost.

Problem Set 3 Due: Dec. 2nd, 2015. Name (Print): 1. You own house worth $250k at end of year 0. Discount rate is R = 12%. Riskless rate is Rf = 4%. NOI0 = E[NOI1 ] = $0. Sale price in years 0 and 1: 0.50 $360k 0.50 $200k $250k Took out interest only $300k mortgage at purchase. Matures in year 1. Mortgage rate is RMtg = 7%. Lender faces $30k foreclosure execution cost. (a) Compute state prices. (b) What is year 0 equity assuming foreclosure given default? Should you default? (c) Suppose RMtg = 5%. What is year 0 equity assuming foreclosure given default? Should you default in year 0? (d) What is market value of mortgage given no default in year 0? (e) Will the lender modify the loan? If so, what is value of modication in year 0? Problem Set 3 Page 2 of 3 Due: Dec. 2nd, 2015. 2. Discount rate R = 17.5%. Riskless rate Rf = 5%. You buy house worth $200k today with prices next year: 0.50 $300k 0.50 $170k $200k Finance purchase with $165k mortgage. Consdering making $7k cap ex that raises property value by 5% in both states. (a) Compute state prices. (b) What is NPV of cap ex? (c) What is fair mortgage rate? (d) Suppose you make cap ex. What is present value of your equity? Does your equity exceed your costs in year 0? (e) What is max you'd be willing to pay for cap ex given debt? Problem Set 3 Page 3 of 3 Due: Dec. 2nd, 2015. 3. You own vacant land. Have plans for a building that costs $20M and takes 1 year to complete. Completed property would generate NOI 0 = $1M. Expected NOI growth rate G = 4%. NOI growth rate volatility StDev[G] = 4%. Discount rate R = 9%. Riskless rate Rf = 5%. (a) Fill in completed property NOI tree. $1.00M Year 0 $1.08M $1.00M Year 1 $1.17M $1.08M $1.00M Year 2 $1.26M $1.17M $1.08M $1.00M Year 3 (b) Fill in completed property price tree. $20.80M Year 0 $22.46M $20.80M Year 1 $24.26M $22.46M $20.80M Year 2 $26.20M $24.26M $22.46M $20.80M Year 3 (c) Compute state prices. (d) What is NPV of developing immediately? (e) What is NPV of waiting 1 year to develop? (f) What is value of option to wait? Should you develop immediately