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Question 14 10 pts A construction loan funds 70% of costs for a $10 mm project, plus interest accruing at 5%/year for 2 years. The
Question 14 10 pts A construction loan funds 70% of costs for a $10 mm project, plus interest accruing at 5%/year for 2 years. The loan draw is 40% in yr 1 and 60% in yr 2. The pro-forma Nol is $700,000. Complete this table and show how you answered the question. loan amount loan draw year 1 accrued interest year 1 loan draw year 2 accrued interest year 2 loan balance end of year 2 cap rate to repay loan cap rate to repay total costs + 15% gross profit margin
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