Year 1 (based on $1.5 million purchase price and existing rents of $2.50 psf): Cash flow from operations (CFO) Mortgage payment (interest and principal) Cash flow after financing $162,000* $106,000** $56,000 *l.e, gross rents of 80,000 x $2.50 or $200,000 less vacancy allowance, operating expenses, and capital reserves. **80% of purchase price, or $1.2 million, financed at 8% over 30 years, results in an annual mortgage payment of $106,000 (1) What is the return on assets (ROA) ? (1A) What is the financing cost (FC)? (1B) What is the return on equity (ROE)