You are analyzing an apartment building with 10 rental units. The market evidence reveals that each unit should rent for $475 per month and the local agency rate is 10%. Variable expenses are estimated to be 30% of EGI and fixed expenses are estimated to be $200 per month. The market derived cap rate is 11%. You borrow 75% loan to value ratio at 11%, fixed rate, fully amortized, 20 year loan with monthly payments. You depreciate the property over 27.5 years on a straight- line basis. You purchase the property at market value which was determined using direct capitalization. Respond to the following with each response being worth 1 point. All responses are for first year of operation. Tax Bracket- 31%. Land is worth $10,000.) Show work below! Ignore half month convention rule on depreciation. NOI BTCF (without)- BTCF (with)- ATCF (without)- ATCF (with) - Rate of Return ATCF (without) = Rate of Return ATCF (with) - Assuming with debt; what's the break-even ratio