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II. Match the following terms with the definitions stated below. I. NOI ?. NPV 3. Discount rate 4. Capitalization rate 5. Loan to value 6.
II. Match the following terms with the definitions stated below. I. NOI ?. NPV 3. Discount rate 4. Capitalization rate 5. Loan to value 6. High leverage A. NOI/Debt service used to evaluate whether the income will support the mortgage payments B. When the amount of debt represents a substantial share of total project value C. The net discounted value of all cash flows in an investment, used to compare different investment options in today's dollars D. A rate of return measure used to compare investments or the discount rate at which the NPV will be zero E. Outstanding mortgage balance/Property value, a measure of the total amount of a debt on a property at a given point in time F. A rate of return used to capture all the risk and uncertainty inherent in future cash flows, necessary to calculate the present value of dollars G. Revenues - vacancy - operating expenses -property taxes, used to understand the cash flow from a property before major capital repairs and debt H. Annual cash/Equity, used to evaluate the strength of cash flow I. NOI/Value, the rate of return on an investment based on a future estimate of income and used to estimate purchase price
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