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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.

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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. 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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