Question: * Final HRTM 421 Homework Assignment: Complete the following problems using the information given below: Total Project Cost: $30,000,000 Lender Standards: o Interest Rate: 7.5%

* Final HRTM 421 Homework Assignment: Complete
* Final HRTM 421 Homework Assignment: Complete the following problems using the information given below: Total Project Cost: $30,000,000 Lender Standards: o Interest Rate: 7.5% o Amortization Rate: 20 Yrs. Debt service coverage ratio: 1.5 o Debt-to-cost ratio 60% Projected annual cash flow of project: $2,750,000 ah flow Investors' Hurdle Rate: 15% Tax Rate: 35% 50 000 Cap Rate 10% Sale in Year 10 1490 . 10 = 7500,000 LOY 10 1. Calculate the maximum amount of money you can borrow based on the lenders debt to cost ratio. 2. Calculate the amount of annual debt service based on the loan terms offered. Always thong h 3. Confirm that the debt service coverage ratio required by the lender is met. Tip 85 - Autor bore a car before buying 4. Calculate the amount of equity required. any chance you may not a cent Always atejose 3 years on your first car loan 5. Calculate the weighted average cost of capital. . (ip #6 - Start a Health Savings Account IHSA) while you are young. Ask about are Dunn AND f 6. Calculate the net present value of the project assuming a sale in year 10. 7. Calculate the internal rate of return. fone w/ Your Money you. Bankers, Investment Advisor Rate Agent, etc

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