Question: ( 1 0 pts . ) A developer is proposing to build and operate an 8 suite office building. Each unit would rent for $

(10 pts.) A developer is proposing to build and operate an 8 suite office building. Each unit would rent for $4,250 per month. It is expected that vacancy would run at 7% and that the expenses would be 12%. The loan is to be 75% of the capitalized value. The developer has a MARR of 15%, the bank is charging 9% interest, and the Long Term Debt Service is a constant 9.5%. To assess the financial worth of this endeavor, determine the following (round to the nearest cent):
a) CAP Rate:
b) Capitalized value:
c) Loan amount:
d) Debt Service Coverage Ratio:
 (10 pts.) A developer is proposing to build and operate an

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