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 @ $3,290,000 takes place EOY 5 The company's weighted average cost of capital that they use as their discount rate for such calculations is 12% 36. What would be the net cash flows after debt service in year 3 2 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 5 ? a. $1.240,000 b. $1,376,320 C. $1,232,953 d. $1,577,033 38. What would be the total cash flows in Year 5, taking into consideration the cash flows, annual debt service, sale price and the balance on the loan at the EOY 58 a. $1,662,985 b. $1.937,607 c. $1,802,986 d. $1.343,455 39. What is the leveraged IRR of the project 2 a. 34.64% b. 24.58% C. 21.48% d. 15.55% 40. Using the company's hurdle rate (discount rate) for leveraged projects of 9.00%, what is the leveraged NPV of the project? a. $659,067 b. $ 678,552 c. $ 591,450 d. $ 953,378 Din 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 @ $3,290,000 takes place EOY 5 The company's weighted average cost of capital that they use as their discount rate for such calculations is 12% 36. What would be the net cash flows after debt service in year 3 2 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 5 ? a. $1.240,000 b. $1,376,320 C. $1,232,953 d. $1,577,033 38. What would be the total cash flows in Year 5, taking into consideration the cash flows, annual debt service, sale price and the balance on the loan at the EOY 58 a. $1,662,985 b. $1.937,607 c. $1,802,986 d. $1.343,455 39. What is the leveraged IRR of the project 2 a. 34.64% b. 24.58% C. 21.48% d. 15.55% 40. Using the company's hurdle rate (discount rate) for leveraged projects of 9.00%, what is the leveraged NPV of the project? a. $659,067 b. $ 678,552 c. $ 591,450 d. $ 953,378 Din