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Questions 31-40 are four (4) points each. Your employer, Kent, Uc_is considering an investment in an office building that has the following cash flows: Purchase
Questions 31-40 are four (4) points each. Your employer, Kent, Uc_is considering an investment in an office building that has the following cash flows: Purchase in Year O................ $-2,750,000 Year 1. 180,000 Year 2 276,000 Year 3. 220,000 Year 4. 239,000 Year 5 250,000, and o sale @ $3,190,000 takes place EOY 5 The company's weighted average cost of capital that they use as their discount rate for such calculations is 8% In the Rubio LLC example above, assume that the company bought the office building using 70% mortgage debt at an interest rate of 4.00% over 240 months. 35. What would be the monthly debt service on the office building? a. $11,669 b. $9.544 c. $6,890 d. $1,877
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