PLEASE SHOW ALL WORK AND FORMULAS USED, THANK YOU!

You are an employee of University Consultants, Ltd., and have been given the following assignment. You are to present an investment analysis of a new small residential income- producing property for sale to a potential investor. The asking price for the property is $1,250,000: rents are estimated at $200.000 during the first year and are expected to grow at 3 percent per year thereafter. Vacancies and collection losses are expected to be 10 percent of rents. Operating expenses will be 35 percent of effective gross income. See the following chart: Year Rent Vacancy & Collection loss Effective Gross Income Operating Expenses NOI 1 200,000 20,000 180,000 63,000 117,000 2 206,000 20.600 185,400 64,890 120,510 3 212.180 21,218 190,962 66,837 124,125 218,545 21,855 196,691 68.842 127.849 5 225,102 22,510 202,592 70,907 131,685 A 70 percent constant payment loan can be obtained at 11 percent interest for 30 years with monthly payment. The property is expected to appreciate in value at 3 percent per year and is expected to be owned for five years and then sold. a) How much is the mortgage payment per year? b) How much is the cash flow from sale of the property at the end of year 5? c) Please list the before-tax cash flow from year 0 to year 5 and compute the investor's expected before-tax internal rate of return on equity invested (BTIRR)? d) What is the first-year debt coverage ratio