you are considering purchasing a small office building for $2,375,000. The expected first-year potential gross income is $440,000 with a vacancy loss equal to 15% of the PGI. Operating expenses and Capital expidentures are expected to be 40% and 5% of the EGI respictively. The mortgage on the property is 75% LTV at a 6% interest rate with a 20-year term with monthly compounding.

a. what is the required equity investment(what is the required down payment)?

b. estimate NOI, the debt service paid in a year and before tac cash flow