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Questions 31-40 are four (4) points each. Your employer, Rubio LLC, is considering an investment in an office building that has the following cash flows:

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Questions 31-40 are four (4) points each. Your employer, Rubio LLC, is considering an investment in an office building that has the following cash flows: Purchase in Year ........... $-2,750,000 Year 1............. 220,000 Year 2.... 226,000 Year 3... 250,000 Year 4. 255,000 Year 5 230,000, and a sale a $3,290,000 takes place EOY 5 The company's weighted average cost of capital that they use as ther discount rate for such calculations is 12% 36. What would be the net cash flows after debt service in year 3 a. $117,840 b. $110,019 C. $100,018 d. $2.980,000 37. What would be the balance of the loan at the end of Year 52 a $1.240,000 b. $1,376,320 c. $1.232.953 d. $1,577,033 In the Rubio LLC example above, assume that the company bought the office building using 70% mortgage debt at an interest rate of 4.00% over 240 months

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