Vacancies and collection losses are expected to be $10$ percent of rents. Operating expenses will be $35$ percent of effective gross income. A fully amortizing $70$ percent loan can be obtained at $7$ percent interest for $30$ years $($total annual payments will be monthly payments $*12).$ The property is expected to appreciate in value at $3$ percent per year and is expected to be owned for five years and theil sold:

Required:

a$.$ What is the first$-$year debt coverage ratio?

b$.$ What is the terminal capitalization rate?

c$.$ What is the investorts expected before tax internal rate of return on equity invested $($BIRR$)?$

d$.$ What wa the NPV using a $13$ pertent discount rate?

$4.$ What is the profitability index using a $13$ percent discount rate?