You are an employee of University Consultants, Limited, and have been given the following assignment. You are to present an

investment analysis of a small retail income$-$producing property for sale to a potential investor. The asking price for the property is

$$1,370,000$; rents are estimated at $$175,360$ during the first year and are expected to grow at $1\mathrm{.}5$ percent per year thereafter.

Vacancies and collection losses are expected to be $15$ percent of rents. Operating expenses will be $35$ percent of effective gross

income. A fully amortizing $70$ percent loan can be obtained at $8$ 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 then sold.

NEED HELP WITH $C,D$ AND $E$

Required:

a$.$ What is the first$-$year debt coverage ratio? ANSWER $1\mathrm{.}14$

b$.$ What is the terminal capitalization rate?

ANSWER $6\mathrm{.}57$

c$.$ What is the investor's expected before$-$tax internal rate of return on equity invested $($BTIRR$)?$

d$.$ What is the NPV using a $10$ percent discount rate?

e$.$ What is the profitability index using a $10$ percent discount rate?

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Required A

Required C

What is the first$-$year debt coverage ratio? $($Do not round intermediate calculations. Round your final answer to $2$ decimal

places.$)$