Question 5 0 pts Extra-Credit Question A real estate company is considering a new project consisting of an apartment building with 50 units. Each unit can be rented for $2,000/month. It is expected to have an average vacancy rate of 10%. Net operating expenses are budgeted as 30% of the project's gross annual income. a) What would be the economic value of this project, using a cap rate of 8%? (5 points) b) If the company receives a balloon payment loan to finance the apartment building project. The worth of the loan equals to 80% of the project's economic value. The monthly payment is based on the uniform payments over a 10-year term, but the loan must be paid in full after 5 years. Assuming the annual percentage rate of charge is 3%, find out what is the monthly. payment, and the payment due at the end of the 5 years? (5 points) Given (A/P, 0.25%, 120) = 0.00966, (P/A, 0.25%, 60) = 55.653