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Your employer, Rubio, LLC , is considering an investment in an office building that has the following cash flows:Purchase in Year 0 $ - 2

Your employer, Rubio, LLC, is considering an investment in an office building that has the following cash flows:Purchase in Year 0 $ -2,500,000Year 1.180,000Year 2..276,000Year 3..220,000Year 4239,000Year 5250,000, and a sale @ $3,190,000 takes place EOY 5The companys weighted average cost of capital that they use as their discount rate for such calculations is 10%In the Rubio LLC example above, assume that the company bought the office building using 70% mortgage debt at an interest rate of 4.00% over 240 months. 41.What would be the monthly debt service on the office building?a.$11,669b.$9,544c.$6,890d.$10,604.6642.What would be the net cash flows after debt service in year 3?a.$92,744b.$79,972c.$100,018d.$2,980,00043.What would be the balance of the loan at the end of Year 5?a.$1,240,000b.$1,433,666c.$1,290,300d.$1,576,77644.What would be the total cash flows in Year 5, taking into consideration the cash flows, annual debt service, sale price and the balance on the loan at the EOY 5?a.$1,662,985b.$1,937,607c.$1,723,196d.$1,879,07845.What is the net cash flow in year 2 after paying debt service?a.$276,000b.$199,877c.$148,744d.No way of telling46.What is the net cash flow in year 4 after paying debt service?a.$ 577,943b.$ 111,744c.$ 591,450d.$ 95,766

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