You are considering the purchase of an apartment complex The following assumptions are made . The purchase price is $1 million Potential gross income (PGI) for the first year of operations is projected to be $17.000 PGII expected to increase 4 percent per year. No vacancies are expected. Operating expenses are estimated at 35 percent of effective gross income. Ignore capital expenditures . The market value of the investment is expected to increase 6 percent per year. Selling expenses will be 4 percent. The holding period is four years . The appropriate unlevered rate of return to discount projected NOis and the projected NSP is 12 percent The required levered rate of return is 14 percent . 70 percent of the acquisition price can be borrowed with a 30-year, monthly payment mortgage The annual interest rate on the mortgage will be 7 percent Financing costs will equal 2 percent of the loan amount. There are no prepayment penalties Required: a. Calculate net operating income (NOI of year 4 none here 5106,275 $125,029 $131.280 none here $106,275 $125,029 $131,280 O $118,778 b. Calculate the net sale proceeds from the sale of the property Onone here $1,030,181 $1,151,379 $1,211,978 $1,272,577 c. Calculate the loan balance at the end of year 4. $568,074 $668,322 $701738 $634,906 none here $102011 $1151379 $1,211,978 $1,272,577 c. Calculate the loan balance at the end of year 4 $568,074 O $668 322 $701738 $634,906 none here d. Calculate the before tax cash flow (BTCF) of year 4. $69.143 $58.772 none here $72,600 $65.686