Part A $-$ Questions

$1.$ What is the EGI in year $1?$

$2.$ What effective gross income multiplier does this imply based on the list price for the property?

$3.$ What is the NOl in year $1?$

$4.$ What cap rate does that imply based on the list price for the property?

$5.$ What is the gross income multiplier implied by the list price?

$6.$ Assuming you hold this investment for five years and you anticipate you can sell the property at a capitalization rate of $7\mathrm{.}50\%$ based on pro$-$forma income, how much do you expect to sell the property for?

$7.$ If closing costs are typically about $5\%$ of the sale price for a seller, what are your expected net proceeds from the sale at the end of year five?

$8.$If your investment criteria dictate that the property needs to generate a target yield of $9\mathrm{.}50\%$ per year, what is the maximum you could pay for this property while still meeting that objective?

$9.$ Would you purchase this property at its current list price?

$10.$ What is your projected internal rate of return $($IRR$),$ assuming you purchase the property for its list price?