Question: 21. The table provides information regarding a building that is being acquired for $4,000,000. The holding period for the building is 2 years. The equity

 21. The table provides information regarding a building that is being

21. The table provides information regarding a building that is being acquired for $4,000,000. The holding period for the building is 2 years. The equity investors are planning to finance the purchase with a 30 -year, fixed-rate, fully amortizing mortgage loan with monthly payments and an annual interest rate of 8.88%. The loan will involve points of 1.25%, other up-front financing costs to the lender of $10,000, and other up-front financing costs to third party service providers of $40,000. The original LTV ratio for the loan is 60%. Round all dollar figures to the nearest dollar, all percentages to the hundredth of a percent, and all other figures to 2 places. a. What are expected NOI \& BTCF in years 1,2,&3 ? Round your answers to the nearest dollar and write them in the table. b. What is the before-tax equity reversion (BTER) at the end of the holding period? Round your answer to the nearest dollar and write it in the box. c. What is the initial equity investment needed to purchase the building? Round your answer to the nearest dollar and write it in the box. d. What is the going-in cap rate? Round your answer to the hundredth of a percent (such as 12.34%,56.70%,9.00%,.1234,.5670, or .0900) e. What is the net income multiplier associated with the acquisition? Round your answer to 2 decimal places (such as 12.34, 56.70, or 9.00 ) 22 f. What is the effective gross income multiplier associated with the acquisition? Round your answer to 2 decimal places (such as 12.34, 56.70, or 9.00) g. What is the equity dividend rate at the time of the acquisition? Round your answer to the hundredth of a percent (such as 12.34%,56.70%,9.00%, .1234, .5670 , or .0900) h. What is the debt coverage ratio for year 1 ? Round your answer to 2 decimal places (such as 12.34,56.70, or 9.00) (. What is the debt coverage ratio for year 2 ? Round your answer to 2 decimal places (such as 12.34,56.70, or 9.00 ) j. What is the debt yield ratio at the time of the acquisition? ? Round your answer to the hundredth of a percent (such as 12.34%,56.70%,9.00%,.1234,.5670, or .0900) k What is the estimated value of the building based on DCF? Round your answer to the nearest dollar 1. What is the NPV of the equity investment? Round your answer to the nearest m. What is the IRR of the equity investment? ? Round your answer to the hundredth of a percent (such as 12.34%,56.70%,9.00%,.1234,.5670, or .0900) n. What is the MIRR of the equity investment Round your answer to the hundredth of a percent (such as 12.34%,56.70%,9.00%,.1234,.5670,00 or 0900 )

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