Suppose that you are considering an investment in an apartment building. Use the information provided below to answer the questions that follow: Type of Property: Apartment building Number of Units: 30 Average Rent (Year 1): $1,500 per unit per month Annual Growth in Average Rent: 5% Vacancy and Collection Losses: 5% of Potential Gross Income Other Income (Year 1): $50 per unit per month Annual Growth in Other Income: 3\% Operating Expenses: 35% of Effective Gross Income Capital Expenditures: 4% of Effective Gross Income Selling Expenses: 5% of Future Selling Price Going-Out Cap Rate: 6.5% Expected Purchase Price: $5.25 million Question 1 (1 point) Question 2 (1 point) What is the NOI in year 1 ? Your Answer: Question 3 (1 point) What is the NOI in year 2 ? Your Answer: Answer Question 4 (1 point) If NOI in year 6 is $412,116. What is the net sale proceeds at the end of year 5 ? Your Answer: Answer What is the net present value of the cash flows if you assume a five-year holding period and a discount rate of 12% given the following information? (If you get a negative NPV, say 500, enter the answer as 500 ) Expected Purchase Price: $5.25 million NOI in year 1: (You calculated this in question 2) NOI in year 2: (You calculated this in question 3) NOI in year 3:356,654 NOI in year 4:374,254 NOI in year 5:392,726 Net Sale Proceeds: (You calculated in question 4) Your