Solve the spreedsheet with the assumptions in the box at the top.

Asking Price Rent year 1 Growth-Rent Vacancy & Coll. Loss Expenses Loan-to-Value Loan Interest Loan term Appreciation rate Holding Period Selling costs Equity discount rate Reinvestment rate $1,250,000 $200,000 3.00% 10.00% of rents 35.00% of EGI 70.00% 11.00% 30 years 3.00% 5 years 0.00% of sale price 14.00% 6.00% Equity Loan Annual Loan Payment Mortgage Balance year 5 Year 1 2 3 4 5 6 PGI Vacancy & Collection Loss EGI Operating Expenses NOI Debt Service BTCF 5 Cash flow from sale in year Sales Price Sales costs Mortgage Balance Before-tax cash flow BTCF Total (a) BTIRR ON EQUITY BTIRR on Equity Year 2 1 2 3 4 5 BTCF BTIRR on Equity (b) FIRST YEAR DEBT COVERAGE RATIO (DCR) Year Debt-Coverage Ratio (c) TERMINAL CAPITALIZATION RATE 1 2 3 4 5 NOI Year 6 Resale Price Terminal Cap Rate (d) NET PRESENT VALUE NPV - Equity (e) PROFITABILITY INDEX Present Value BTCF Initial Equity Investment Profitability Index: Asking Price Rent year 1 Growth-Rent Vacancy & Coll. Loss Expenses Loan-to-Value Loan Interest Loan term Appreciation rate Holding Period Selling costs Equity discount rate Reinvestment rate $1,250,000 $200,000 3.00% 10.00% of rents 35.00% of EGI 70.00% 11.00% 30 years 3.00% 5 years 0.00% of sale price 14.00% 6.00% Equity Loan Annual Loan Payment Mortgage Balance year 5 Year 1 2 3 4 5 6 PGI Vacancy & Collection Loss EGI Operating Expenses NOI Debt Service BTCF 5 Cash flow from sale in year Sales Price Sales costs Mortgage Balance Before-tax cash flow BTCF Total (a) BTIRR ON EQUITY BTIRR on Equity Year 2 1 2 3 4 5 BTCF BTIRR on Equity (b) FIRST YEAR DEBT COVERAGE RATIO (DCR) Year Debt-Coverage Ratio (c) TERMINAL CAPITALIZATION RATE 1 2 3 4 5 NOI Year 6 Resale Price Terminal Cap Rate (d) NET PRESENT VALUE NPV - Equity (e) PROFITABILITY INDEX Present Value BTCF Initial Equity Investment Profitability Index