Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer all the questions, and please show the excel formula. Thank you. Question #1: You are a loan officer at an NYC Investment Bank.
Please answer all the questions, and please show the excel formula. Thank you.
Question #1: You are a loan officer at an NYC Investment Bank. You have been asked to review and make a recommendation on accepting or rejecting a loan application. Lending Assumptions: 10 Year T-Bill Rate: .764 Bank Loan Mark-up: 300 Bps Term-Years 10 Amortization: Years 30 Loan Type: Balloon DSCR: 1.2 LTV: 70% Property Acquisition Details: Asking Price: Cap Rate: 5.05% Cash Flow: $72,000 Please answer the following 3 Questions: -How much would the bank loan his company? - What would the annual payment be? Should the bank approve this loan application? Question #2 Economic Terms: Purchase Price: Purchase a Company on Project Selling the Company on NCF Growth Rate: Net Cash Flow Year 1: WACC $89,000 1/1/20 12/31/2025 2% $8,010 7% Questions: What is the IRR? What is the NPV? Would you make this acquisition
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started