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Pls show work on excel if possible. Thank you Baruch College, Zicklin School of Business Real Estate Finance and Investment (RES 3200) Project Assignment No.

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Pls show work on excel if possible. Thank you

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Baruch College, Zicklin School of Business Real Estate Finance and Investment (RES 3200) Project Assignment No. 1 PROBLEM 4 - Anne Hathaway has just bought the Shakespeare Apartments in the growing community of Far Away, WY. The price was $600,000 or $15,000 per unit. Ms. Hathaway assumed the original mortgage. The performance of the property over the past three years has averaged each year: Rent Revenue (PGI) $100,000 Less Vacancy & Collection Loss (3%) (3,000) EGI $97,000 Less: Operating Expenses (41.560) NOI $55,440 After analyzing the rents of the Essex House and The Raleigh rental properties nearby, Ms. Hathaway feels she can raise the unit rents by $10 per month; however, this will increase the vacancies to 5%. She will then be able to refinance the property and withdraw $140,126.73 of tax-free (actually tax-deferred) monies. (She has a marginal tax rate of 30%.). The mortgage she assumed on purchase was originally $540,000 at 7.5% annual interest payable in level monthly installments over 21 years. The mortgage was eight years old at the time of Ms. Hathaway's purchase. The new mortgage would be for 25 years at 8.5% annual interest payable in level monthly installments. Answer the following questions - showing all steps and calculations - on the Excel spreadsheet numbering each of your answers to relate to the question being answered. Round your answers to two (2) decimal places where appropriate. 7. What is the monthly payment amount and the annual debt service on the assumed mortgage? (Calculate to two decimal places.) 8. What was the mortgage balance when Ms. Hathaway assumed it? 9. What is the market value of the assumed loan? 10. What is the loan-to-value ratio on the assumed mortgage? 11. What is the before tax cash flow with the assumed mortgage? Page 4 of 5

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