What is the net sales price?

Fill out the timeline of the cash flows for this investment. Be sure to include all cash inflows and outflows (i.e., equity investment, BTCF and BTER), and be careful about their signs. (10 points)

Investment Analysis You are analyzing an investment opportunity with the following information: . Initial purchase price: $450,000 Expected holding period: 15 years NOI is estimated to be $36,000/year for the first seven years and increase to $ 42,000/year for the last 8 years. Loan amount: $400,000 (interest only) Monthly mortgage payment is $28,800/year. Expected sale (assume no sale expenses) at the end of 15 years at the "going-out" cap rate of 8% How much is the initial equity investment amount? (1 points) 50,000 What are the Before-Tax Cash Flows (BTCF) from operation for year 2 and year 8? (2 points) Year 2 36.000 Year 8 42.000 How much is the Before-Tax Equity Reversion (BTER)? (5 points) Sale Price 1,427,476 Sale Expenses 0 Net Sale Price Mortgage Debt 285,200 BTER 1,142,276 Fill out the timeline of the cash flows for this investment. Be sure to include all cash inflows and outflows (i.e., equity investment, BTCF and BTER), and be careful about their signs. (10 points) Year o Year 1-7 Year 8-14 Year 15