the loan is Q#3( 25 pts) You are looking at an income producing real estate with a NOI of $150,000 for the first year. The NOI will increase aythe rate of 5% for the next three years followed by 2% for indefinite future. The bank will finance the property on 70% loan to value ratio. The asking price for the property is $1,500,000 amortized over 20 years with annual payments. The loan will have an interest rate of 10%. The property will be sold at the end of four years. Investors require a 12% return on equity for this type of property. a) b) c) What is the present value of equity interest in the property? What is the total present value of the property? What is the implied overall capitalization rate for this property based on your answer in part b. d) What is the Debt Service Coverage ratio in the first year