Find the missing cash flows in the following accrual loan problem!

Orlando Investments is buying an office building in Orlando, FL.

• Building's asking price: $3,500,000.
• The company is planning to accept the asking price and take a loan with an LTV of 75%.
• The company is estimating the first year's net operating income to be $400,000.
• The lender is willing to offer an accrual loan to the investor, with a 15% annual accrual rate.
• The lender requires a 1.25 first year's debt coverage ratio.
• The lender also requires that the payments on the loan are made monthly.
• The lender also requires that the 2nd year's loan payment is 10% higher than the 1st year's loan payment.

In the table below, fill in the missing numbers for the investor who's taking the loan! Round to whole dollar. Put negative signs, where necessary. Do NOT put the "$" sign. As always, in order to avoid rounding errors it might be best to build this table in Excel and use correct cell referencing.

Year 1	Year 2
Beginning loan balance	2,625,000	2,704,038
Total loan payment		10% higher than Year 1's loan payment
Interest payment	399,038	409,449
Principal payment	-79,038
Ending loan balance