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 potental investoc. The asking price for the property is $1,280,000; rents are estimated at $163,840 during the first year and ate expected to grow at 2.5 percent per year thereaftet. Vacancies and coliection losses are expected to be 10 percent of rents. Operating expenses will be 35 percent of effective gross income. A fully amortixing 70 percent loan can be obtalned at 8 percent interest for 30 years cotal annual poyments will be monthy payments 12. The property is expected to appreciate in value at 3 percent per yeor and is expected to be owned for five yeors and then sold. Required: a. What is the firstyear debt coverage ratio? b. What is the terminal capitalitation rate? c. What is the investor's expected before-tax internal rate of tetuen on equity imested (8rieas? d. What is the NPV using a 13 percent discount rate? e. What is the profitablity index using a 13 percent discount rate