a. A $1,000,000 fully amortizing, fixed rate mortgage with a 10 year term, monthly payments, an interest rate of 6%, and $12,000 closing costs.

b. Using the mortgage selected in part a, calculate the NPV to an investor of a property with the following characteristics.

i. Purchase Price = $2,000,000

ii. LTV = 50%

iii. NOI = $20,000

iv. A discount rate on the equity investment of 9%

v. Tax rate = 35%

vi. 39 year straight-line depreciation

Please show work.