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You are an employee of University Consultants, Ltd., and have been given the following assignment. Yo potential investor. The asking price for the property is

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You are an employee of University Consultants, Ltd., and have been given the following assignment. Yo potential investor. The asking price for the property is $1,250,000; rents are estimated at $200,000 dur expected to be 10 percent of rents. Operating expenses will be 35 percent of effective gross income. A be monthly payments * 12). The property is expected to appreciate in value at 3 percent per year and i a. What is the investor's expected before-tax internal rate of return on equity invested (BTIRR)? b. What is the rst-year debt coverage ratio? c. What is the terminal capitalization rate? d. What is the NPV using a 14 percent discount rate? What does this mean? e. What is the protability index using a 14 percent discount rate? What does this mean

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