he following Ssumpur . The purchase price is $1 million Potential gross income (PGI) for the first year of operations is projected to be $171,000. PGI is expected to increase 3 percent per year. No vacancies are expected. Operating expenses are estimated at 35 percent of effective gross income. Ignore capital expenditures. The market value of the investment is expected to increase 4 percent per year. Selling expenses will be 4 percent The holding period is four years. The appropriate unlevered rate of return to discount projected Wols and the projected NSP is 12 percent. The required levered rate of return is 14 percent. 70 percent of the acquisition price can be borrowed with a 30-year, monthly payment mortgage. The annual interest rate on the mortgage will be 7 percent. Financing costs will equal 2 percent of the loan amount There are no prepayment penalties. . equired: Calculate net operating income (NOI) of year 4 O none here O $115,384 $91,093 O $103.238 $121,457 b. Calculate the net sale proceeds from the sale of the property. O none here O $1,066,911 $842,298 O $954,604 $1,123,064 c. Calculate the loan balance at the end of year 4. $501,242 O $668,322 O $634,906 O none here $568,074 d. Calculate the before-tax cash flow (BTCF) of year 4. $49,178 $62,292 none here property. O $454,742 O $341,056 O none here O $432,005 O $386,531 Calculate the (levered) net present value of this investment. $110,080 O $97,130 O $129,506 O none here O $123,031