Question: need help with last four highlighted areas Using the formla information given in Illustration 11-4 on page 326 of the text and the information on

need help with last four highlighted areas
need help with last four highlighted areas Using the formla information given

Using the formla information given in Illustration 11-4 on page 326 of the text and the information on this project, calculate the requirements. Total Project Cost $ 28,000,000 0.08 Lenders Standards Interest Rate Amortization rate Debt Service Coverage Ratio Loan to Value 40 Years 1.5 60% Projected annual cash flow $ 2,500,000 Investors hurdle rate 18.0% Terminal sale would occur at the end of year 10 Requried: Calculate the following in the area below using EXCEL Formulas. Show your work Maximum loan based on: Loan to Value Debt Service Coverage Ratio 60% 1.5 Amount of Annual Debt Service $ 16,800,000 Confim Debt Service coverage is met 0.148809524 Calculate amount of Equity Required $ 11,200,000 Calculate weighted Average Cost of Capital 0.048 Calculate the present values of the project below assuming a sale at the end of year 10 and a capitalizaiton rate of 10% Present value cash flows years 1-10 Present value of terminal cash flow based on sale Total Present Value Net Present Value Using the formla information given in Illustration 11-4 on page 326 of the text and the information on this project, calculate the requirements. Total Project Cost $ 28,000,000 0.08 Lenders Standards Interest Rate Amortization rate Debt Service Coverage Ratio Loan to Value 40 Years 1.5 60% Projected annual cash flow $ 2,500,000 Investors hurdle rate 18.0% Terminal sale would occur at the end of year 10 Requried: Calculate the following in the area below using EXCEL Formulas. Show your work Maximum loan based on: Loan to Value Debt Service Coverage Ratio 60% 1.5 Amount of Annual Debt Service $ 16,800,000 Confim Debt Service coverage is met 0.148809524 Calculate amount of Equity Required $ 11,200,000 Calculate weighted Average Cost of Capital 0.048 Calculate the present values of the project below assuming a sale at the end of year 10 and a capitalizaiton rate of 10% Present value cash flows years 1-10 Present value of terminal cash flow based on sale Total Present Value Net Present Value

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