Purchase Price $1,200,000

Debt financing 900,000

Expected cap rate at sale 8.0 percent

Required unlevered yield: 12 percent

Year

1 2 3 4 5 6

NOI 100,000 100,000 100,000 100,000 100,000 100,000

Annual

Debt Service 60,000 60,000 60,000 60,000 60,000 60,000

Ending Debt 900,000

34. Compute the equity dividend rate for the first year of operations

35. Compute the debt service coverage ratio

36. Compute the unlevered net present value of the investment for a five-year holding period.

37. Compute the levered yield/IRR for a five-year holding period.