only need questions 3,4

1. Replicate Figure 7.1 if the NOI dropped to $150,000, thereby producing a negative or unfavorable spread. 2. If operating expenses rose further to decrease the NOI to $120,000, calculate the current yield for Figure 7.1. 3. A property is expected to generate $300,000 of NOI over the next 12 months. Discussion with lenders leads to the conclusion that the minimum acceptable debt-coverage ratio will be 1.20 and that loan terms will be 8% per annum, with 20 -year amortization (monthly payments). a. What is the maximum supportable annual debt service? b. What size loan does this imply? 4. Discussion with lenders indicates that a loan can be obtained for 75% of a property's market value. Loan terms will probably be 8% interest, 20-year amortization (monthly payments), with the rate renegotiable after 7 years. The property is estimated to be worth $200,000. a. How much can be borrowed? b. What will be the annual debt service? c. What is the expected annual loan constant