Use the following information to answer questions 16-20 You are considering purchasing a small office building for $1,850,000 Your expectations include: First-year gross potential income of $340,000; Vacancy & collection losses equal to 10% of PGI; Operating expenses = 40% of EGI; Capital expenditures = 5% of EGI $1,300,000 mortgage @ 6% Mortgage will be amortized over 25 years Total up-front financing costs = 3% of the loan amount Question 16 (5 points) Calculate Going-in Cap Rate (Ro): 8.64% 9.36% 9.10% 10.50% Question 17 (5 points) Calculate the Net Income Multiplier (NIM): 9.48 10.99 11.70 10.68 Question 18 (5 points) Calculate the Equity Dividend Ratio (EDR): 11.51% 14.23% 12.80% 10.45%