For Questions 20-22 use the following set of cash flows:

Initial investment = $1,300,000

Yr 1 : 140,000

Yr 2: 150,000

Yr 3: 155,000

Yr 4: 175,000

Yr 5: 190,000

Sale of property occurs at the end of Yr 5 for a price of $1,750,000

For Question 24 use the facts above, and assume that there is 65% debt financing used for the same investment. Interest is 6.00% (monthly pymts) over 240 months.

24) Monthly debt service is:

a. $9,703.44 b. $6,519.52 c. $5,270.00 d. $6,053.84