Question 4 Consider a property with 5 years holding period, which is going to be purchased in year 0 for $10 Million. The PBTCF in year 5 is $12 Million (including reversion) and the PBTCF is equal to $1 Million per year in years from 1 to 4. The appropriate required rate of return for the cash flows from the building is 10%. There are no capital expenses. 1 The buyer is taking out a 15-year constant payment mortgage, with rate of 6%, loan amount of $8 Million, and annual payments. The underwriting criteria are a maximum ILTV of 75%, terminal LTV of 65%, and minimum debt coverage ratio over the next 5 years of 1.2. Which underwriting criteria does this investment meet