Please show ALL steps and use the appropriate methods!

1. An apartment is expected to produce $115,000 NOI the first year, increasing by 3 percent per year each year over a projected 7 year holding period. A 80 percent loan-to-value ratio is typical. Current terms are 6.5 percent interest for 25 years (annual payments). Equity investors expect a 12 percent yield. The property is expected to increase in value by 15 percent over the holding period. Value the property using Ellwood.

2. An office property with 60,000 square feet of rentable space is expected to rent for $40 per square foot in the coming year. Rent is expected to decline 3 percent per year over a projected holding period of seven years. Vacancy will be at 7.5 percent, and the operating expense ratio (based on effective gross income) will be at 35 percent. The property is expected to appreciate at the rate of 2 percent per year. It will be financed using 75 percent debt at an interest rate of 8 percent, amortized over 15 years with monthly payments. Equity investors expect an 15 percent before tax yield. What is the value of this property? HINT: Use the Finance-Explicit Model.

3. A small shopping center is expected to produce net operating income of $24,980 in year 1. You expect NOI to increase by 4 percent per year over an expected holding period of seven years. Property value is expected to increase by 3.5 percent per year. The discount rate is 10 percent. Assume there will be no costs of sale. Estimate the value of the shopping center. HINT: Use the Net Operating Income and Net Selling Price Model.

4. The following property information is provided. Net operating income (NOI) $95,000 Debt service (DS) $62,500 Mortgage Amount $620,000 Loan-to-value ratio (M) 0.80 a. Calculate the indicated debt coverage ratio. b. Calculate the mortgage constant, or mortgage capitalization rate (Rm).

c. Using the debt coverage ratio and the other information provided, calculate the overall rate (RO) for this property. d. The property you are attempting to appraise using the income approach has a NOI of $125,000. Can you use the above information (a through c) to estimate the value of this property? If so, what is it? e. What role does the loan-to-value ratio play in this valuation approach?

5. First-year NOI for a long-term net lease is expected to be $75,000. Rent is escalating at a rate of 4 percent per year, but there is a two-year period between adjustments. Thus, the income for years 1 and 2 will be $50,000, increasing to $50,000 (1+.03)2 = $53,045 in years 3 and 4, and so on. The discount rate is 12 percent. Assuming beginning-of-year payments, estimate the value of the leased fee.