This is the easiest question because you have to pretty much replicate what we did in the last numerical example in Chapter 10 Power Point! This is the most difficult question because all sub-questions are connected: if you make a mistake in the first part, the rest will be incorrect as well. So, be careful! Check your math! So, here's what I want you to do: Re-do the problem in Chapter 10 PowerPoint slides 78-85, EXCEPT the NOI for the first year is not $50,000 but double that ($100,000), AND the loan is an interest-only loan. If you can do the math in Excel with correct referencing to cells with intermediate results. This will allow you to avoid rounding errors. Otherwise, increase decimal places - the more the better! Say, 6 or even higher. Mortgage-Equity Capitalization 5 Cam An property degrert NOI Suro in the year, in bh Anning trying hing Their baplarning finance the purchase ang 1- DCR-12, required by the The will be of wilt monthly payments The for the property 11% Incora 125mm on gutty for this type of property DS Your answers: (Question 1) I don't need your answers for this one. But the answers to this question are used to solve Question 21 (Question 2) Your answer is s . Round to whole dollar. Don't put "s". (Question 3) Your answer is 5 Round to whole dollar. Don't put "$", (Question 4) Your answer is s Round to whole dollar. Don't put "$". s (Question 5) Your answer is %. Round to 2 decimal places. Don't put "%". E.g., for 1.23% put 1.23. (Question 6) Your answer is %. Round to 2 decimal places. Don't put "%". E.g., for 1.23% put 1.23. (Question 7) Your answer is %. Round to 2 decimal places. Don't put "%". E.g., for 1.23% put 1.23. Your answer to this statement is (Put a One last question! If the first year's NOI increases further, the investor's first year return (or the equity dividend rate) will __and the going-in cap rate will . , and number from the table below that corresponds to your chosen answer. For example, type 1 if your chosen answer is the first row in the table.) 1 increase, increase 2 increase; remain unchanged 3 increase; decrease 4 remain unchanged; Increase 5 remain unchanged: remain unchanged 6 remain unchanged; decrease 7 decrease, increase 8 decrease, remain unchanged 9 decrease; decrease This is the easiest question because you have to pretty much replicate what we did in the last numerical example in Chapter 10 Power Point! This is the most difficult question because all sub-questions are connected: if you make a mistake in the first part, the rest will be incorrect as well. So, be careful! Check your math! So, here's what I want you to do: Re-do the problem in Chapter 10 PowerPoint slides 78-85, EXCEPT the NOI for the first year is not $50,000 but double that ($100,000), AND the loan is an interest-only loan. If you can do the math in Excel with correct referencing to cells with intermediate results. This will allow you to avoid rounding errors. Otherwise, increase decimal places - the more the better! Say, 6 or even higher. Mortgage-Equity Capitalization 5 Cam An property degrert NOI Suro in the year, in bh Anning trying hing Their baplarning finance the purchase ang 1- DCR-12, required by the The will be of wilt monthly payments The for the property 11% Incora 125mm on gutty for this type of property DS Your answers: (Question 1) I don't need your answers for this one. But the answers to this question are used to solve Question 21 (Question 2) Your answer is s . Round to whole dollar. Don't put "s". (Question 3) Your answer is 5 Round to whole dollar. Don't put "$", (Question 4) Your answer is s Round to whole dollar. Don't put "$". s (Question 5) Your answer is %. Round to 2 decimal places. Don't put "%". E.g., for 1.23% put 1.23. (Question 6) Your answer is %. Round to 2 decimal places. Don't put "%". E.g., for 1.23% put 1.23. (Question 7) Your answer is %. Round to 2 decimal places. Don't put "%". E.g., for 1.23% put 1.23. Your answer to this statement is (Put a One last question! If the first year's NOI increases further, the investor's first year return (or the equity dividend rate) will __and the going-in cap rate will . , and number from the table below that corresponds to your chosen answer. For example, type 1 if your chosen answer is the first row in the table.) 1 increase, increase 2 increase; remain unchanged 3 increase; decrease 4 remain unchanged; Increase 5 remain unchanged: remain unchanged 6 remain unchanged; decrease 7 decrease, increase 8 decrease, remain unchanged 9 decrease; decrease