Rafiq, a real estate professional, is representing a client who wants to purchase a large distribution centre. To complete the purchase, the client has secured a commitment from a lender for a $12,000,000 mortgage with an annual interest rate of 6%, compounded semi-annually, and amortized over 25 years. As part of his due diligence, Rafiq is preparing a leveraged discounted cash flow analysis for his client and needs to know the annual debt service required for the investment. What is the client's annual debt service for this loan? A) $623,580.49 B) $782,146.28 C) $921,321.54 D) $1,056,328.61 Talia is a real estate professional representing a client who wants to purchase a property on which a bed and breakfast operates. The client will require a mortgage to acquire the property and tells Talia they can afford an annual payment of $45,000. Talia does some research and determines that the current interest rate for mortgages for that type of property is 9%, compounded annually, with an amortization period of 25 years. Based on this information, what is the maximum loan Talia estimates the client will qualify for? A) $667,269.40 B) $1,022,344.00 C) $442,016.08 D) $856,742.34 Todd is a real estate professional representing a client who is interested in purchasing a suburban spa/medical complex. Todd believes he can negotiate a purchase price of $1,600,000. The client wants to sell the property after 4 years for $2,000,000 and earn an annual return of 12%. Todd projects the annual net operating income to be $300,000 for the first year, $315,000 for the second year, $325,000 for the third year, and $345,000 for the fourth year To determine if the client will earn their required rate of return, Todd calculate the net present value of the investment. Which of the following represents the net present value for the investment? A) $421,337.95 B) $630,444.47 C) $1,574,763.66 D) $640,591.69 Casey, a real estate professional, is representing a client who wants to purchase an 8-unit apartment building that is being offered for sale at $850,000. The client plans to contribute $280,000 towards the purchase and obtain a mortgage for the remainder. As part of her analysis, Casey will need to determine the loan-to-value ratio. What is the loan-to-value ratio as a percentage? A) 67% B) 33% C) 84% D) 75%