Question $5$

The following are the details of a real estate investment project and its associated mortgage loan:

The developer purchased the property for $$1,000,000$ at year $0.$

The developer starts to earn annual income from this property at year $1,$ and the initial net

operating income $($NOI$)$ is $$90,000.$

Both the property value and NOI are projected to increase annually by $2$ percent.

The property depreciates at a constant annual rate of $2\mathrm{.}5$ percent, which is based on only

$80$ percent of the original property value.

The developer purchased this property with a $70$ percent loan at $5$ percent interest, which has an

annual payment schedule and amortizes in $20$ years.

The developer sells the property at year $5,$ which incurs a $4$ percent selling expense.

The income tax rate is $40$ percent.

Using the information above, fill in all the cells in the table in Excel, and type in the numerical values

of the corresponding letters in questions $5$ to $9.$ Do not include dollar signs.

$($In questions $7$ to $9,$ the altered conditions are not accumulated over to the next question.$)$

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