1 Nm You are interested in purchasing a business. Current owner of the business is asking $750,000. You estimated that you can borrow a 15-year term loan at 5% interest. You expect 18% return from this project. Current owner opened up the books and you estimated future cash flows. You also estimated that you would be able to sell the business for about $1,100,000 at the end of year 10. Year EBITDA 75,000 78,000 81,000 84,000 5 87,000 6 92,000 7 97,000 8 102,000 9 107,000 10 112,000 4 What will be the maximum debt payment amount a lender will be comfortable with if the lender has a minimum debt-service coverage ratio requirement of 1.5 (use year 1 EBITDA)? Select one: a. 125,000 b. 75,000 c. 50,000 d. 112,500