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Selected in (a) are the correct answers can someone please explain how they got these answers Initial Investment. You are purchasing a building for $10,000,000

Selected in (a) are the correct answers can someone please explain how they got these answers

Initial Investment. You are purchasing a building for $10,000,000 with a 75% LTV loan that has 1 points. Your initial investment will be:

Answers:

2,475,000

2,500,000

2,575,000(a)

2,710,000

2,820,000

2,950,000

Ratio Analysis. (Purchase Price = 25,000,000; Mortgage Amount 17,500,000; Points = 3; Interest Rate = 5%; Amortization Period = 25 years; PGI= 3,000,000; VC=9%; OPEX= 925,000; CAPEX= 165,000; NOI= 1,640,000; RSF=90,000). What is the quoted lease rate?

Answers:

27.27

30.00

33.33(a)

35.00

Going Out Cap Rate. (Holding Period = 5 years; Year5 NOI=155,250; Year6 NOI=158,500; Projected sale Price 1,250,000; Selling Expense = 7%) What is the Going Out Cap Rate

Answers:

12.42%

12.68%(a)

13.22%

13.53%

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