You have decided to purchase an industrial warehouse. The purchase price is $1 million and you have a five-year holding period. You wish to compare two alternative financing arrangements: Option 1: $700,000 loan, 6\% annual rate, 30-year amortization term, interest-only payments, and $50,000 in up-front financing costs. Option 2: $750,000 loan, 6% annual rate, 30-year amortization term, interest-only payments, and $0 in up-front financing costs. Compute the present value of monthly loan payments under both alternatives. Which option has a larger present value of payments? If the up-front financing costs are also incorporated, which loan option has a larger present value? 0. Assume you take Option 1 from the previous question. Assume also that you project Year 1 NOI to be $108,000. Finally, in contrast to Question 9, assume annual, not monthly, debt payments. Calculate the following: (a) The implied going-in cap rate. (b) The debt service coverage ratio (DSCR) at origination. (c) The largest loan you could get assuming the lender requires a minimum DSCR of 1.2 at origination